March 14, 2016 No. RSM-1542 Auditor's Report on the Financial

RSM

RSM RUS, LLC 119285, Moscow, ul. Pudovkina, 4 Tel. +7 495 363 28 48 Fax +7 495 981 41 21 E-mail: [email protected] www.rsmrus.ru

March 14, 2016 No. RSM-1542

Auditor's report on the financial statements for 2015

To the shareholders of Lenenergo, Power Industry and Electrification Pubic Joint Stock Company

Audited entity: Lenenergo, Power Industry and Electrification Pubic Joint Stock Company (abbreviated name Lenenergo, PJSC). Address: 19624, Saint Petersburg, Ploshchad Konstitutsii, 1; Primary state registration number 1027809170300.

Auditor: RSM RUS, Limited Liability Company. Address: 119285, Moscow, ul. Pudovkina, 4; Tel. (495) 363-28-48; fax (495) 981-41-21; Primary state registration number 1027700257540;

RSM RUS, Limited Liability Company, is a member of Association Sodruzhestvo (Self-Regulatory Organization (SRO) of Auditors, Non-Profit Partnership (membership certificate No. 6938, primary entry registration number 11306030308)), address: 119192, Moscow, Michurinsky pr-t, 21, bldg.4

We have audited the accompanying financial statements of Lenenergo PJSC, which comprise the balance sheet as at 31 December 2015, the statements of profit (loss), changes in equity and cash flows for the year then ended, and notes to the balance sheet and profit and loss statement.

Responsibility of the audited entity for the financial statements

Management of Lenenergo PJSC is responsible for preparation and fair presentation of the financial statements in accordance with the Russian financial reporting rules, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

RSM RUS is a member of the RSM network and trades as RSM. RSM is the trade name used by the members of the RSM network. All members of the RSM network are independent accounting and consulting firms, each of which practices in its own right. The RSM network is not itself a separate corporate entity of any description in any jurisdiction.

Auditor's responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with the federal auditing standards. Those standards require that we comply with the applicable ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control.

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the entity’s management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of Lenenergo PJSC as at 31 December 2019, and its financial performance and cash flows for the year then ended in accordance with the Russian financial reporting rules.

Chairperson of the Management Board (Signed) N. A. Dantser Auditor qualification certificate No. 05-000015 issued for an indefinite term pursuant to Resolution No. 24 dated 15 Seal: (RSM RUS, Limited November 2011 of the Self-Regulatory Organization of Liability Company, MOSCOW, Auditors Russian Collegium of Auditors, Non-Profit Principal State Registration Partnership. Number (OGRN)

Primary entry registration number in the Register of 1027700257540, Taxpayer Auditors and Audit Organizations: 29605011647 Identification Number (INN) 7722020834)

Head of audit (Signed) E. F. Shibanova Auditor qualification certificate No. 05-000224 issued for an indefinite term pursuant to Resolution No. 45 dated 14 November 2012 of the Self-Regulatory Organization of Auditors Russian Collegium of Auditors, Non-Profit Partnership.

Primary entry registration number in the Register of Auditors and Audit Organizations: 21005002912.

Balance Sheet At 31 December 2015 Codes OKUD form 0710001 Date (day, month, year) 31 12 2015 Company Lenenergo, PJSC OKPO 00107131 Taxpayer identification number INN 7803002209

Business type OKVED 40.10.2 Company / ownership type joint-stock company / joint ownership private business / foreign ownership OKOPF / OKFS 1 22 47 34 Measurement unit: RUB thousand OKEI 384 Location (address) 196247, Russia, Saint Petersburg, Ploshchad Konstitutsii, 1

At At At Notes Description Line code 2015 2014 2013 (1) (2) (3) ASSETS I. NON-CURRENT ASSETS 5.1.1.-5.2.2. Intangible assets 1110 183,709 214,363 105,301 5.2.2. including pending transactions to acquire intangible assets 1111 58,614 83,407 33,137

5.2.1.-5.2.2. Research and development results 1120 5,247 14,299 83,401 5.2.2. including expenses for research and development in progress 1121

Intangible exploration assets 1130

Tangible exploration assets 1140

5.3.1.-5.3.6. Fixed assets 1150 134,606,501 139,479,145 124,823,286 land plots and environmental facilities 1151 109,219 107,416 79,465 buildings, machinery and equipment, structures 1152 121,019,639 127,462,247 112,321,552 other types of fixed assets 1153 54,789 62,085 24,305 5.3.5. construction in progress 1154 13,335,252 10,558,780 11,753,400 5.3.6. advances issued for capital construction and acquisition of fixed assets 1155 34,962 1,008,111 457,875 raw and other materials for use in the creation of fixed assets* 1156 52,640 280,506 186,689

5.3.1. Income-bearing investments in tangible assets 1160 - - - property for leasing 1161 property on tenancy contract basis 1162

5.4.1.-5.4.3. Financial investments 1170 18,077,957 2,605,008 897,795 investments in subsidiaries 1171 16,135,313 897,791 897,791 investments in affiliates 1172 4 investments in other companies 1173 52,818 3,500 loans granted to companies for a term exceeding 12 months 1174 financial investments 1175 1,889,826 1,703,717

5.7.2. Deferred tax assets 1180 3,666,044 3,342,825 979,858

Other non-current assets 1190 478,923 567,138 632,215 Total Section I 1100 157,018,381 146,222,778 127,521,856 II. CURRENT ASSETS 5.5.1-5.5.2. Inventories 1210 687,203 681,106 584,059 raw materials, supplies and other similar assets 1211 687,203 681,106 584,059 work-in-progress costs 1212 finished products and goods for resale 1213 goods shipped 1214 other inventories and costs 1215

Value added tax on assets purchased 1220 744,171 941,111 494,588

5.6.1.-5.6.4. Accounts receivable 1230 7,399,020 12,519,884 9,782,364

due after 12 months following the reporting date 1231 502,467 752,712 323,534 buyers and customers 123101 25,408 202,527 2,983 promissory notes receivable 123102 advances issued 123103 3,851 3,852 32,880 other accounts receivable 123104 473,208 546,333 287,671

due within 12 months following the reporting date 1232 6,896,553 11,767,172 9,458,830 buyers and customers 123201 4,110,681 6,866,073 5,894,969 promissory notes receivable 123202 dividends receivable from subsidiaries and affiliates 123203 contributions to the share capital receivable from members (founders) 123204 advances issued 123205 98,720 1,051,051 540,122 other accounts receivable 123206 2,687,152 3,850,048 3,023,739

5.4.1-5.4.3. Financial investments (excluding cash equivalents) 1240 3,867,000 3,056,539 6,284,109 loans granted to companies for a term not exceeding 12 months 1241 other short-term financial investments 1242 3,867,000 3,056,539 6,284,109

F.4 Cash and cash equivalents 1250 24,417,087 1,166,511 3,370,400 cash on hand 1251 95 106 settlement accounts 1252 24,414,528 1,165,075 3,369,454 foreign currency accounts 1253 other cash 1254 2,559 1,341 840

Other current assets 1260 550165 181,460 82,417 Total Section II 1200 37,664,646 18,546,611 20,597,937 BALANCE 1600 194,683,027 164,769,389 148,119,793

At At At Notes Description Line code 2015 2014 2013 (1) (2) (3) LIABILITIES III. CAPITAL AND RESERVES 3.1. Share capital (joint-stock capital, owners’ equity, partners’ contributions) 1310 1,752,079 1,752,079 1,228,326 3.1. Capital (before registration of changes) 1311 47,817,779 3.1. Treasury shares redeemed from shareholders 1320 5.3.1., 5.1.1. Non-current assets revaluation 1340 51,125,173 51,259,380 51,433,062 3.1. Additional capital (excluding revaluation) 1350 14,067,153 14,067,153 11,416,960 3.1. Reserve capital 1360 184,249 184,249 184,249

3.1. Retained earnings (uncovered loss) 1370 (1,610,309) 4,177,883 12,078,295 of previous years 1371 4,306,187 12,145,727 11,653,428 of the reporting period 1372 (5,916,496) (7,967,844) 424,867 Total Section III 1300 113,336,124 71,440,744 76,340,892 IV. NON-CURRENT LIABILITIES 5.6.7.-5.6.8. Borrowings 1410 25,100,000 48,188,440 29,406,037 bank loans repayable after 12 months following the reporting date 1411 22,700,000 42,188,440 23,406,037 loans repayable after 12 months following the reporting date 1412 2,400,000 6,000,000 6,000,000

5.7.2. Deferred tax liabilities 1420 4,076,108 3,805,388 2,568,663

5.7.1. Estimated liabilities 1430

5.6.5.-5.6.6. Other liabilities 1450 2,744,661 3,213,499 1,906,733 Total Section IV 1400 31,920,769 55,207,327 33,881,433 V. CURRENT LIABILITIES 5.6.7.-5.6.8. Borrowings 1510 13,356,305 1,580,979 3,970,003 bank loans repayable within 12 months following the reporting date 1511 7,064,332 1,477,788 3,868,188 loans repayable within 12 months following the reporting date 1512 6,291,973 103,191 101,815

5.6.5.-5.6.6. Accounts payable 1520 32,513,111 32,570,045 32,917,612 suppliers and contractors 1521 18,171,351 19,002,101 13,991,689 promissory notes payable 1522 wages payable 1523 283,808 226,929 234,879 payables to state extra-budgetary funds 1524 105,888 86,304 75,606 taxes payable 1525 305,529 225,400 642,283 advances received 1526 11,550,614 11,030,377 13,800,034 dividends payable to members (founders) 1527 other accounts payable 1528 2,095,921 1,998,934 4,173,121

Deferred income 1530

5.7.1. Estimated liabilities 1540 3,556,718 3,970,294 1,009,853

Other liabilities 1550 Total Section V 1500 49,426,134 38,121,318 37,897,468 BALANCE 1700 194,683,027 164,769,389 148,119,793

CEO (Signed) R. N. Berdnikov Chief Accountant (Signed) G. V. Kuznetsova (Signature) (Printed full name) (Signature)

March 10, 2016

Profit and Loss Statement for 12 months of 2015 Codes OKUD form 0710002 Date (day, month, year) 31 12 2015 Company Lenenergo, PJSC OKPO 00107131 Taxpayer identification number INN 7803002209

Business type private business / foreign ownership OKVED 40.10.2 Company / ownership type joint-stock company OKOPF / OKFS 1 22 47 34 Measurement unit: RUB thousand OKEI 384

For 2015 For 2014 Notes Description Code (1) (2) 1 2 3 4 5 Revenue 2110 43,726,661 44,722,108 including revenue from power transmission 2111 40,684,173 36,261,449 revenue from grid connection 2112 2,865,376 8,248,994 revenue from organizing the functioning and development of the UES of Russia as related to distribution grid facilities 2113 revenue from resale of electric power and capacity 2114 income from shareholdings in other companies 2115 lease income 2116 revenue from sale of other industrial products, goods, works, services 2117 177,112 211,665 revenue from sale of other non-industrial products, goods, works, services 2118

2.1. Cost of sales 2120 (44,060,478) (39,256,552) including cost of power transmission 2121 (43,560,443) (38,756,444) cost of grid connection 2122 (435,207) (390,068) cost of organizing the functioning and development of the UES of Russia as related to distribution grid facilities 2123 cost of resale of electric power and capacity 2124 cost of shareholdings in other companies 2125 cost of lease services 2126 cost of other industrial products, goods, works, services 2127 (64,828) (110,040) cost of other non-industrial products, goods, works, services 2128

Gross profit (loss) 2100 (333,817) 5,465,556 2.1. Selling and distribution expenses 2210 2.1. Management expenses 2220 Profit (loss) from sales 2200 (333,817) 5,465,556 Income from shareholdings in other companies 2310 759 560 Interest receivable 2320 1,004,758 1,344,860 Interest payable 2330 (3,778,445) (2,765,976) 5.11. Other income 2340 36,745,408 3,622,513 5.11. Other expenses 2350 (40,167,197) (16,460,876) Profit/(loss) before tax 2300 (6,528,534) (8,793,363) 2.3. Current income tax 2410 (3,715) (481,718) 2.3. including constant tax liabilities (assets) 2421 958,143 1,017,805 2.3. Changes in deferred tax liabilities 2430 (270,720) (1,236,725) 2.3. Changes in deferred tax assets 2450 618,284 2,362,967 2.3. Other 2460 268,189 180,995 Net profit (loss) 2400 (5,916,496) (7,967,844)

For 2015 For 2014 Notes Description Code (1) (2) 5.1.1. FOR REFERENCE 5.3.1. Result of non-current assets revaluation not included in the net profit (loss) of the period 2510 3.2. Result of other operations not included in the net profit (loss) of the period 2520 Total profit/loss for the period 2500 (5,916,496) (7,967,844) 2.2. Basic earnings (loss) per share 2900 (3.5667) (6.7598) 2.2. Diluted earnings (loss) per share 2910

CEO (Signed) R. N. Berdnikov Chief Accountant G. V. Kuznetsova (Signed) (Signature) (Printed full name) (Signature)

March 10, 2016

Statement of Changes in Equity for 2015 Codes OKUD form 0710003 Date (day, month, year) 31 12 2015 Company Lenenergo, PJSC OKPO 00107131 Taxpayer identification number INN 7803002209

Business type/industry power industry OKVED 40.10.2 Company / ownership type joint-stock company OKOPF / OKFS 1 22 47 34 Measurement unit: RUB thousand OKEI 384

3.1. Flow of capital Treasury Capital shares Cod (before Additional Reserve Retained earnings Description Share capital redeemed Total e registration of capital capital (uncovered loss) from changes) shareholders Amount of capital at 31 December 2013 (1) 3100 1,228,326 - - 62,850,022 184,249 12,078,295 76,340,892 For 2014 (2) Capital increase - total: 3210 523,753 - 2,650,194 - (7,967,844) (4,793,897) including: net profit 3211 X X X X (7,967,844) (7,967,844) property revaluation 3212 X X X - income directly attributed to capital increase 3213 X X X - additional share issue 3214 523,753 2,650,194 X X 3,173,947 share par value increase 3215 X X X X corporate entity restructuring 3216 - Capital reduction - total: 3220 - - - - (106,251) (106,251) including: loss 3221 X X X X - property revaluation 3222 X X X - expenses directly attributed to capital reduction 3223 X X X (22) (22) share par value decrease 3224 X X - decrease in the number of shares 3225 X X - corporate entity restructuring 3226 - dividends 3227 X X X X (106,229) (106,229) Change in additional capital 3230 X X (173,683) X 173,683 X Change in reserve capital 3240 X X X X Amount of capital at 31 December 2014 (2) 3200 1,752,079 - - 65,326,533 184,249 4,177,883 71,440,744 For 2015 (3) Capital increase - total: 3310 - 47,817,779 - - - (5,915,020) 41,902,759 including: net profit 3311 X X X X (5,916,496) (5,916,496) property revaluation 3312 X X X - income directly attributed to capital increase 3313 X X X 1,476 1,476 additional share issue 3314 47,817,779 X X 47,817,779 share par value increase 3315 X X X X corporate entity restructuring 3316 - Capital reduction - total: 3320 - - - - (7,379) (7,379) including: loss 3321 X X X X - property revaluation 3322 X X X - expenses directly attributed to capital reduction 3323 X X X (7,379) (7,379) share par value decrease 3324 X X X - decrease in the number of shares 3325 X X - corporate entity restructuring 3326 - dividends 3327 X X X X - Change in additional capital 3330 X X (134,207) X 134,207 X Change in reserve capital 3340 X X X X Amount of capital at 31 December 2014 (3) 3300 1,752,079 47,817,779 - 65,192,326 184,249 (1,610,309) 113,336,124

3.2. Adjustments due to changes in accounting policy and error correction

At 31 December Changes in capital for 2014 Description Code At 31 December 2015 2013 from net profit from other factors Capital - total before adjustments 3400 76,340,892 (4,726,465) (173,683) 71,440,744 adjustment due to: changes in accounting policy 3410 - - - - error correction 3420 - - - - after adjustments 3500 76,340,892 (4,726,465) (173,683) 71,440,744 including: retained earnings (uncovered loss): before adjustments 3401 12,078,295 (7,900,412) 4,177,883 adjustment due to: changes in accounting policy 3411 - error correction 3421 - after adjustments 3501 12,078,295 (7,900,412) - 4,177,883 other capital items for which adjustments were made: (by items) before adjustments 3402 64,262,597 3,173,947 (173,683) 67,262,861 Share capital 34021 1,228,326 523,753 1,752,079 Capital (before registration of changes) - - Treasury shares redeemed from shareholders 34022 - - Additional capital 34023 62,850,022 2,650,194 (173,683) 65,326,533 Reserve capital 34024 184,249 - 184,249 adjustment due to: changes in accounting policy 3412 - error correction 3422 - after adjustments 3502 64,262,597 3,173,947 (173,683) 67,262,861

3.3. Net assets

Description Code At 31 December 2015 At 31 December 2014 At 31 December 2013

Net assets 3600 113,336,124 71,440,744 76,340,892

CEO (Signed) R. N. Berdnikov Chief Accountant (Signed) G. V. Kuznetsova (Signature) (Printed full name) (Signature)

March 10, 2016

Statement of Cash Flows for 12 months of 2015 Codes OKUD form 0710004 Date (day, month, year) 31 12 2015 Company Lenenergo, PJSC OKPO 00107131 Taxpayer identification number INN 7803002209

Business type/industry power industry OKVED 40.10.2 Company / ownership type OKOPF / OKFS 1 22 47 34 Measurement unit: RUB thousand OKEI 384

For For Description Code 2015 2014 1 2 3 4 Cash flows from current transactions Proceeds - total 4110 46,502,111 42,536,434 including: from sale of products, goods, works, and services 4111 43,832,286 42,162,482 including from sale of products, goods, works, and services to parent companies, subsidiaries and affiliates 411101 11,959 890 from lease payments, license fees, royalties, commission fees, and other similar payments 4112 60,884 47,439 including from lease payments, license fees, royalties, commission fees, and other similar payments from parent companies, subsidiaries and affiliates 411201 17,543 18,472 from resale of financial investments 4113 including from resale of financial investments to parent companies, subsidiaries and affiliates 411301 other proceeds 4119 2,608,941 326,513 including other proceeds from parent companies, subsidiaries and affiliates 411901 595 25 Payments - total 4120 (37,892,981) (34,898,030) including: to suppliers (contractors) for raw and other materials, work, services 4121 (25,601,319) (23,099,971) including to suppliers (contractors) for raw and other materials, work, services of parent companies, subsidiaries and affiliates 412101 (13518411) (1,199,889) employee compensations 4122 (4,949,313) (5,006,193) interest on debt obligations 4123 (3,637,870) (2,755,704) including interest on debt obligations to parent companies, subsidiaries and affiliates 412301 corporate income tax 4124 (760,871) other payments 4129 (3,704,479) (3,275,291) including other payments to parent companies, subsidiaries and affiliates 412901 (54,087) (96,268) Balance of cash flows from current transactions 4100 8,609,130 7,638,404 Cash flows from investment transactions Proceeds - total 4210 34,990,316 5,022,874 including: from sale of non-current assets (except for financial investments) 4211 52 17,471 including from sale of non-current assets (except for financial investments) to parent companies, subsidiaries and affiliates 421101 from sale of shares (equity interests) in other companies 4212 including from sale of shares (equity interests) in other companies to parent companies, subsidiaries and affiliates 421201 from repayment of loans granted, from sale of debt securities (money claims to third persons) 4213 30 4,328,131 including from repayment of loans granted, from sale of debt securities (money claims to third persons) of parent companies, subsidiaries and affiliates 421301 dividends, interest on debt financial investments and similar proceeds from 4214 34,990,234 677,272 including dividends, interest on debt financial investments and similar proceeds from equity investments in other companies from parent companies, subsidiaries and affiliates 421401 32,000,759 624 other proceeds 4219 including other proceeds from parent companies, subsidiaries and affiliates 421901 Payments - total 4220 (8,263,821) (31,283,738) including: in connection with purchase, creation, modernization, reconstruction and preparation for operation of non- current assets 4221 (5,799,190) (19,080,629) including payments to parent companies, subsidiaries and affiliates in connection with purchase, creation, modernization, reconstruction and preparation for operation of non-current assets 422101 in connection with purchase of shares (equity interests) in other companies 4222 (3,500) including payments to parent companies, subsidiaries and affiliates in connection with purchase of shares (equity interests) in other companies 422201 in connection with purchase of debt securities (money claims to third persons), provision of loans to third persons 4223 (1,305,024) (11,403,935) including payments to parent companies, subsidiaries and affiliates in connection with purchase of debt securities (money claims to third persons), provision of loans to third persons 422301 interest on debt obligations included in the cost of investment asset 4224 (1,159,607) (795,674) including interest on debt obligations included in the cost of investment asset to parent companies, subsidiaries and affiliates 422401 other payments 4229 including other payments to parent companies, subsidiaries and affiliates 422901 Balance of cash flows from investment transactions 4200 26,726,495 (26,260,864)

For For Description Code 2015 2014 Cash flows from financial transactions Proceeds - total 4310 3,016,517 22,856,557 including: obtaining loans and borrowings 4311 2,436,260 22,682,403 including obtaining loans and borrowings from parent companies, subsidiaries and affiliates 431101 monetary contributions of owners (members) 4312 including monetary contributions of owners (members) of parent companies, subsidiaries and affiliates 431201 from issue of shares, increase of equity interests 4313 580,257 174,154 including from issue of shares, increase of equity interests of parent companies, subsidiaries and affiliates 431301 580,257 173,832 from issue of bonds, promissory notes and other debt securities, etc. 4314 including from issue of bonds, promissory notes and other debt securities, etc. of parent companies, subsidiaries and affiliates 431401 other proceeds 4319 including other proceeds from parent companies, subsidiaries and affiliates 431901 Payments - total 4320 (15,101,566) (6,437,986) including: to owners (members) in connection with redemption of their shares (equity interests) in the company or in connection with cessation of their membership 4321 including to owners (members) in connection with redemption of their shares (equity interests) in the company or in connection with cessation of their membership in parent companies, subsidiaries and affiliates 432101 dividends and other payments related to distribution of profit for the benefit of owners (members) 4322 (106,253) including dividends and other payments related to distribution of profit for the benefit of owners (members) of parent companies, subsidiaries and affiliates 432201 in connection with repayment (redemption) of promissory notes and other debt securities, repayment of loans and borrowings 4323 (13,925,022) (6,313,440) including in connection with repayment (redemption) of promissory notes and other debt securities, repayment of loans and borrowings to parent companies, subsidiaries and affiliates 432301 other payments 4329 (1,176,544) (18,293) including other payments to parent companies, subsidiaries and affiliates 432901 Balance of cash flows from financial transactions 4300 (12,085,049) 16,418,571 Balance of cash flow for the reporting period 4400 23,250,576 (2,203,889) Balance of cash and cash equivalents at the beginning of the reporting period 4450 1,166,511 3,370,400 Balance of cash and cash equivalents at the end of the reporting period 4500 24,417,087 1,166,511 Effect of exchange rate fluctuations against the ruble 4490

CEO (Signed) R. N. Berdnikov Chief Accountant (Signed) G. V. Kuznetsova (Signature) (Printed full name) (Signature)

March 10, 2016

3.4. Calculation of estimated net asset value of the joint stock company

Balance sheet line At 31 December 2015 At 31 December 2014 At 31 December 2013 Description code (8) (7) (6) 1 2 3 4 5 I. Assets 1. Intangible assets 1110 183,709 214,363 105,301 2. Research and development results 1120 5,247 14,299 83,401 3. Intangible exploration assets 1130 - - - 4. Tangible exploration assets 1140 - - - 5. Fixed assets 1150 134,606,501 139,479,145 124,823,286 6. Income-bearing investments in tangible assets 1160 - - - 7. Long-term and short-term financial 1170+1240 21,944,957 5,661,547 7,181,904 8. Other non-current assets 2 1180+1190 4,144,967 3,909,963 1,612,073 9. Inventories 1210 687,203 681,106 584,059 10. Value added tax on assets purchased 1220 744,171 941,111 494,588 11. Accounts receivable 3 1230 7,399,020 12,519,884 9,782,364 12. Cash and cash equivalents 1250 24,417,087 1,166,511 3,370,400 13. Other current assets 1 1260 550,165 181,460 82,417 14. Total assets taken for calculation (sum of items 1-13) 194,683,027 164,769,389 148,119,793 II. Liabilities 15. Long-term borrowings 1410 25,100,000 48,188,440 29,406,037 16. Deferred tax liabilities 1420 4,076,108 3,805,388 2,568,663 17. Estimated liabilities 1430+1540 3,556,718 3,970,294 1,009,853 18. Other non-current liabilities 1450 2,744,661 3,213,499 1,906,733 19. Short-term borrowings 1510 13,356,305 1,580,979 3,970,003 20. Accounts payable 4 1520 32,513,111 32,570,045 32,917,612 21. Other current liabilities 5 1550 - - - 22. Total liabilities taken for calculation (sum of items 15-21) 81,346,903 93,328,645 71,778,901 Net asset value of the joint-stock company (total assets taken for calculation (item 14) minus total liabilities taken for calculation (item 23. 22)) 113,336,124 71,440,744 76,340,892

CEO (Signed) R. N. Berdnikov Chief Accountant (Signed) G. V. Kuznetsova (Signature) (Printed full name) (Signature)

March 10, 2016

Notes to the Balance Sheet and Profit and Loss Statement of Lenenergo PJSC for 2015

These notes in text form are an integral part of the annual accounting (financial) statements of Lenenergo PJSC for 2015 prepared in accordance with the laws of the Russian Federation.

All amounts are expressed in thousands of rubles. Negative values are shown in parentheses.

1. GENERAL INFORMATION

Registered address of the Company: 196247, Saint Petersburg, Ploshchad Konstitutsii, 1.

Postal address of the Company: 196247, Saint Petersburg, Ploshchad Konstitutsii, 1.

Taxpayer Identification Number (INN) (Taxpayer Registration Reason Code (KPP)): 7803002209 (781001001).

Primary State Registration Number (OGRN): 1027809170300.

Date of state registration: 22 January 1993, certificate number 2084. Agency in charge of the state registration: Registration Chamber of the Mayor's Office of Saint Petersburg. The period of the Company’s duration is perpetual.

Currently, the Company operates in two constituent entities of the Russian Federation: Saint Petersburg and Leningrad Region.

The main objective of the Company is generation of profit. The Company may engage in the following activities to generate profit:  electric power transmission;  activities related to the operation of power grids;  connection of additional capacity to consumers;  other activities not prohibited by the laws of the Russian Federation.

The Company’s average annual headcount during the reporting period in 2015 was 6,027 employees (in 2014: 6,210 employees).

The Board of Directors and the executive body of the Company are as follows:

The Company’s Board of Directors was elected by the decision of the Annual General Meeting of Shareholders on 22 June 2015 and comprises 13 members. At 31 December 2015, the Board of Directors of the Company includes:

No. Full name Position (when nominated) 1 Egor Vyacheslavovich Prokhorov Chairperson of the Board of Directors, Lenenergo PJSC. Deputy Director General for Finance, Rosseti PJSC 2 Vasily Vladislavovich Nikonov Deputy Chairperson of the Board of Directors, Lenenergo PJSC. Director of Energy Department, Rosneft Oil JSC 3 Sergey Yuryevich Lebedev Deputy Chairperson of the Board of Directors, Lenenergo PJSC. Director of Strategic Development Department, Rosseti PJSC 4 Pavel Nikolayevich Snikkars Director of Power Industry Development Department, Ministry of Power Industry of Russia 5 Yury Kazbekovich Zafesov Director of Procurement Department, Rosseti PJSC 6 Svetlana Semenovna Zholnerchik Senior Advisor, Rosseti PJSC 7 Andrey Sergeevich Kolyada Head of Share Capital, Department of Corporate Governance, Shareholder and Investor Relations, Rosseti PJSC

No. Full name Position (when nominated)

8 Evgenia Evgenyevna Rozova Deputy Chairperson, Saint Petersburg Energy and Building Services Committee 9 Dmitry Viktorovich Koptin Chairperson, Saint Petersburg Tariff Committee 10 Andrey Sergeevich Bondarchuk Chairperson, Saint Petersburg Energy and Building Services Committee 11 Vladimir Vladimirovich Sofyin Director of Technological Development and Innovation Department, Rosseti PJSC 12 Khasan Mushtafayevich Likhov Deputy Director General for Special Projects, Rosseti PJSC 13 Aleksandr Sergeyevich Kalinin President of All-Russian Non-Governmental Organization of Small and Medium Business OPORA ROSSII

At 31 December 2015, the Management Board of Lenenergo PJSC includes:

№ Full name Position in Lenenergo PJSC 1 Roman Nikolayevich Berdnikov Chairperson of the Management Board, Acting Director General, Lenenergo PJSC 2 Maksim Sergeevich Artemyev First Deputy Director General - Chief Engineer, Lenenergo PJSC 3 Aleksandr Dmitriyevich Nikonov Deputy Director General for Security, Lenenergo PJSC 4 Maksim Anatolyevich Ivanov First Deputy Director General for Capital Construction and Investment Activities, Lenenergo PJSC

2. SIGNIFICANT ACCOUNTING POLICIES

Basis of preparation of annual accounting (financial) statements

The Company conducts its accounting in accordance with Federal Law No. 402-FZ “On Accounting” dated 6 December 2011, Regulations on Accounting and Accounting Statements in the Russian Federation approved by Order of the Ministry of Finance of the Russian Federation No. 34n dated 29 July 1998) (as amended on 30 December 1999, 24 March 2000, 18 September 2006, 26 March 2007, 25 October 2010, and 24 December 2010), and the current Accounting Regulations. Accounting (financial) statements of the Company for 2015 were prepared in accordance with the same Law and regulations, the Company’s Accounting Policy approved by Order No. 836 dated 31.12.2013 as supplemented and amended by Order No. 132 dated 27.03.2015, No. 183 dated 24.04.2015, No. 310 dated 08.07.2015, No. 626 dated 31.12.2015, on the basis of consolidated balance-sheet data of the Company’s branches.

Accounting (financial) statements of the Company are compiled on the basis of standard forms recommended for application by Order No. 66n dated 2 July 2010 of the Ministry of Finance of the Russian Federation (as amended on 06.04.2019) "On the Forms of Accounting Statements of Organizations".

If the Company has no data on the relevant assets, liabilities, income, expenses, business operations, for which indicators (lines, columns) are provided for in standard forms, such indicators (rows, columns) are not included in the Company's forms.

Director general, deputies to director general and directors of branches of the Company are responsible for the organization of accounting and fair presentation of the accounting statements of the Company, compliance with laws when conducting business operations, and ensuring statutory audit.

Chief accountant - head of accounting and tax records and reporting department of the Company - is responsible for maintaining accounting records, preparation of financial statements, development of accounting policies, and provision of full and reliable accounting statements to internal and external users.

Accounting (financial) statements of the Company for 2015 were compiled without derogation from the principles and rules of accounting, which may occur if such rules do not allow presenting fairly the property status and financial performance of the Company.

In preparing the balance sheet, the following assumptions were made to clarify the presentation of assets and liabilities for individual significant items in the statements:

Line Balance sheet indicator Data presentation in the statements code I. NON-CURRENT ASSETS Net presentation of accounts payable (60.01) and accounts Other non-current assets 1190 receivable (76.01.1) for insurance payments VAT on advances received (76.AB) for long-term advances Long-term accounts receivable (other) 123104 received, line 123206 Net presentation of accounts payable (60.01) and accounts Short-term accounts receivable (other) 123206 receivable (76.02) for claims IV. NON-CURRENT LIABILITIES Net presentation of accounts payable (60.01) and accounts Other liabilities 1450 receivable (76.01.1) for insurance payments V. CURRENT LIABILITIES Net presentation of accounts payable (60.01) and accounts receivable (76.01.1) for insurance payments Net presentation of accounts payable (60.01) and accounts Accounts payable (suppliers and contractors) 1521 receivable (76.02) for claims Presentation of contractor payments under agency contracts (76.11)

Each significant indicator is disclosed in the accounting (financial) statements of the Company. An indicator shall be considered significant, if separate non-disclosure thereof in the Balance Sheet and the Profit and Loss Statement could influence the economic decisions of users taken on the basis of the reporting information.

Uncertainty of estimates

The key assumptions concerning future events and other sources of uncertainty of estimates at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting year are as follows:  financial investments;  deferred taxes;  provision for doubtful debts;  provision for upcoming payment of leave allowances;  provision for payment of annual remunerations;  provision for bonuses related to the commissioning of new facilities;  provisions made for contingencies: – provision for claims; – provision for legal proceedings.

Fixed assets

Fixed assets include assets held for the performance of work, provision of services or for administrative needs of Lenenergo PJSC for a period exceeding 12 months and with a value exceeding 40,000 rubles.

In accordance with clauses 7, 8 of RAS 6/01 “Accounting for Fixed Assets”, fixed assets are recognized in accounting records at initial cost. The initial cost of fixed assets acquired for a fee is the amount of actual costs incurred by the company for the acquisition, construction and manufacturing thereof, excluding the value added tax and other refundable taxes (except as provided for in the laws of the Russian Federation).

The Company revalues fixed assets to determine the current (replacement) value so as to ensure that the cost of fixed assets at which they are carried in accounting records and statements is not significantly different from the current (replacement) cost, on a regular basis but not more than once a year.

Revaluation of groups of fixed assets is carried out in accordance with the procedure established by law on the basis of the relevant administrative documents of Lenenergo PJSC.

Fixed assets put into operation before 1 January 2002 were depreciated using the straight-line method according to the standard rates approved by Decree of the Government of the USSR No. 1072 dated 22 October 1990.

Fixed assets acquired starting from 1 January 2002 and till December 31, 2017 were depreciated at the rates based on useful lives determined in accordance with the Classification of Fixed Assets Included in Depreciation Groups approved by Decree of the Government of the Russian Federation No. 1 dated 1 January 2002.

In accordance with clause 20 of RAS 6/01 “Accounting for Fixed Assets”, useful lives of fixed assets (in years) that have been used to calculate depreciation are presented in Appendix 5.3.2.

Depreciation charges in respect of fixed assets are recognized in the accounting records of the reporting period to which they relate and accrue regardless of the Company performance in the reporting period (RAS 6/01).

The initial cost of fixed assets at which they are recognized in accounting records may change in the event of completion, additional equipment, reconstruction, modernization, partial liquidation or revaluation of fixed assets (clause 14 of RAS 6/01).

In accordance with clause 11 of RAS 6/01 “Accounting for Fixed Assets”, fixed assets received under contracts providing for performance of obligations (payment) in kind are valuated as follows: – The initial cost of fixed assets received under contracts providing for performance of obligations (payment) in kind is the value of assets transferred or to be transferred by the company. The value of assets transferred or to be transferred by the company is established based on the price at which the company determines the value of similar assets in comparable circumstances. – If the value of assets transferred or to be transferred by the company cannot be established, the cost of fixed assets received by the company under contracts providing for performance of obligations (payment) in kind is determined based on the price at which similar fixed assets are acquired in comparable circumstances.

Intangible assets

In accordance with clause 6 of RAS 14/2007 “Accounting for Intangible Assets”, intangible assets are recognized in accounting records at initial cost. The initial cost of intangible assets is the amount (expressed in monetary terms) equal to the amount of payment in cash or in another form or to the amount of accounts payable paid or accrued by the company on acquisition, creation of an asset or ensuring conditions for the intended use of the asset.

The actual (initial) cost of an intangible asset acquired under contracts providing for performance of obligations (payment) in kind is determined based on the value of assets transferred or to be transferred by the company. If the value of assets transferred or to be transferred by the company under such contracts cannot be determined, the cost of the intangible asset received by the company is determined based on the price at which similar intangible assets are acquired in comparable circumstances.

In accordance with clause 28 of RAS 14/2007 “Accounting for Intangible Assets”, intangible assets with a definite useful life are depreciated using the straight-line method.

Lenenergo PJSC establishes useful life for each type of intangible assets that are subject to depreciation upon their initial recognition based on the expected useful life of the asset during which the Company can receive economic benefits. The useful life of an intangible asset is determined by a specially created commission.

Intangible assets are tested annually for the need to adjust their useful lives and depreciation method. In the event of a significant change in the period during which the company intends to use the asset, the useful life of such asset shall be adjusted.

During the reporting period, the Company did not identify any factors indicating that the useful lives need to be adjusted or any factors causing impairment.

Depreciation charges in respect of intangible assets are recognized in the accounting records of the reporting period to which they relate and accrue regardless of the Company performance in the reporting period (clause 33 of RAS 14/2007).

Useful lives of intangible assets for the purpose of depreciation accrual are as follows:

Intangible assets Useful life "lenenergo.ru" website 11 months IS Alpha 60 months Electronic archive 60 months Electronic databases 60 months Trademark 120 months R&D 12 months

Intangible asset “Lenenergo website” was not written off after full repayment of the cost due to its use to receive economic benefits and for advertising and information distribution purposes.

Inventories

In accordance with clause 2 of RAS 5/01 “Inventory Accounting”, inventories are assets used as raw and other materials for the primary activity of the Company (performance of work, provision of services) or for administrative needs.

In accordance with clauses 5, 6 of RAS 5/01 “Inventory Accounting”, inventories are stated at the actual cost of acquisition. The actual cost of inventories acquired for a fee is the amount of actual costs incurred by the company for the acquisition thereof, excluding the value added tax and other refundable taxes (except as provided for in the laws of the Russian Federation).

Inventories released for production or otherwise disposed of are valued on the first-in-first-out basis.

The cost of tools, appliances and household supplies is charged to expense in full when they are transferred to operation. To ensure their integrity, quantitative accounting is carried out.

In accordance with clause 24 of RAS 5/01 “Inventory Accounting”, at the end of the reporting year inventories are reported in the balance sheet at cost determined by the above inventory assessment methods.

Accounting and release of special clothing are carried out on the basis of the standard “Occupational Safety Management System in Lenenergo PJSC”:

 Standard norms of free release of special clothing, special footwear and other personal protective equipment;  Norms for equipment of workplaces with inventory (duty) protective equipment;  Procedure for providing employees with special clothing, footwear and other personal protective equipment.

Accounts receivable

Accounts receivable that were not repaid within the period established by contract and are not secured by respective guarantees are recognized as a doubtful debt. A provision for doubtful debts is created based on the results of reconciliation of accounts receivable.

The amount of the provision is determined separately for each doubtful debt depending on the financial position (solvency) of the debtor and estimated probability of debt repayment in whole or in part.

The Company creates a provision for doubtful debts if it is more likely than not that outflow of the Company's economic resources will be required or the inflow of economic benefits will reduce as a result of non-payment of the respective debt.

The Company creates provisions for doubtful debts in the event of recognizing doubtful accounts receivable. The amounts of such provisions are charged to the company’s profits or losses.

Income

Revenues are recognized in accounting records in the amount (expressed in monetary terms) equal to the amount of the received cash and other assets and/or the amount of receivables (subject to the provisions of clause 3 of RAS 9/99 "Company Income" No. 32n (as amended on 30 December 1999, 30 March 2001, 18 September 2006, 27 November 2006). If the received amount covers only a part of the revenue, the recognized revenue will be determined as the amount of receipts and receivables (to the extent not covered by the receipts).

Revenues are recognized by the Company in the accounting records when all of the following conditions are met (clause 12 of RAS 9/99): – the company has the right to receive such revenues arising from a particular contract or duly confirmed otherwise; – the amount of revenue can be determined; – increased economic benefits are expected as a result of a particular transaction; – ownership (possession, use and disposal) of products (goods) has passed to the buyer from the organization, or services have been accepted by the customer (services have been provided); – expenses, which were or will be incurred in connection with such transaction, can be determined.

The list of revenues recognized as income from ordinary activities of the Company:  revenue from power transmission;  revenue from grid connection;  revenue from industrial work and services.

Revenue from the performance of particular work, provision of particular service, sale of particular product is recognized in the accounting records as and when they are completed, if the completion of work, service, product can be determined.

Income of the company not related to the sale of products, performance of work, provision of services, sale of goods is not recognized as income from ordinary activities and is to be reported as part of other income in accordance with the requirements of RAS 9/99.

Revenue from sale of products and goods, including revenues related to performance of work, is recognized in accordance with the assumption of temporary certainty of the facts of business activity (on shipment) and issue of settlement documents for payment. Revenue is accounted for by type of activity.

Revenue from sales is recorded in the Profit and Loss Statement less value added tax, discounts, and other similar mandatory payments.

Income for the reporting year is recorded in the Profit and Loss Statement separately for ordinary types of activities and other income and expenses with itemization by the types and amounts and comparison with the previous year.

Expenses

The Company accounts for expenses in accordance with Accounting Regulation "Company Expenses" RAS 10/99 approved by Order of the Ministry of Finance of the Russian Federation No. 33n dated 6 May 1999.

In accordance with clause 17 of RAS 10/99 “Company Expenses”, expenses are recognized in the accounting records irrespective of the intention to receive revenues, sundry or other income and irrespective of the form in which expenses are incurred (in specie, in kind or otherwise).

In accordance with clause 18 of RAS 10/99 “Company Expenses”, expenses are recognized in the reporting period in which they occurred irrespective of the time of actual payment or other form in which they were incurred.

Management expenses are not shown separately from general expenses by primary activities, and selling and distribution expenses are not separated.

Expenses for the reporting year are recorded in the Profit and Loss Statement separately for ordinary types of activities and other income and expenses with itemization by the types and amounts and comparison with the previous year.

Accounting for loan and borrowing costs

The Company accounts for loan and borrowing costs in accordance with the Accounting Regulation "Accounting for Loan and Borrowing Costs" RAS 15/2008 approved by Order of the Ministry of Finance of the Russian Federation No. 107n dated 6 October 2008.

Accounts payable on loans and borrowings received are recognized taking into account interest payable at the end of the reporting period.

Interest payable to lenders is accrued on a monthly basis. Accrued interest is recognized separately.

Accrued coupon yield on bonds is recognized as other expenses in the reporting periods to which such accruals relate. Accruals are also made monthly.

Additional borrowing and loan costs (cost of information and consulting services, etc.) are accounted separately and recorded as other expenses as they arise.

Accounting of transactions related to issue of bonds is carried out in accordance with the requirements of RAS 15/01 “Accounting for Loans and Borrowings”.

Interest on loans and borrowings directly attributable to the acquisition and/or construction of an investment asset is included in the cost of such asset and repaid by depreciation accrual, except to the extent that no asset depreciation is provided for in the accounting rules.

Cash and cash equivalents

Cash assets of Company include non-cash money in ruble current accounts of the Executive Office, in special accounts, excluding deposit accounts, and cash in transit.

Accounting of cash flows among the Company’s current accounts is kept on account 57 “Transfers in transit”.

Net presentation of cash flows Cash flows are shown in the Cash Flow Statement on a net basis when they relate to operations of the Company’s counterparties rather than operations of the Company itself and/or when receipts from any persons stipulate appropriate payments to other persons.

For the purpose of compiling the Cash Flow Statement in accordance with the requirements of RAS 23/2011 “Cash Flow Statement”, the balanced version of indirect taxes is recorded in the line “Other payments” of the Cash Flow Statement and is not distributed by types of activity (current, investment, and financial transactions). Payments to sellers and receipts from buyers are shown excluding VAT.

Asset valuation methods

In accordance with clause 1, Article 11 of Federal Law No. 402-FZ, valuation of assets and liabilities is made for the reflection thereof in the accounting records and accounting (financial) statements in monetary terms.

Valuation of assets purchased for a fee is carried out by summing up expenses actually incurred for their purchase; donated assets - at the market value on the date of recognition of such assets; assets produced in-house - at the production cost.

Reporting segments

The Company identified the following operating segments:  Power transmission services;  Power grid connection services.

Distribution of income and expenses between operating segments using the direct method is carried out at the level of primary activities. Distribution of other income and expenses between operating segments is not carried out due to inexpediency and the lack of necessary basis.

Division by geographical segments is carried out in management accounting using the methods described in Section 4 of Accounting Policies "Methodical aspects of accounting policies for the management accounting purposes".

For the purpose of reporting information on geographical characteristics, the Company performs separate accounting within management accounting for constituent entities of the Russian Federation where it carries out regulated activities.

Other

Expenses incurred in the reporting period but relating to subsequent reporting periods are shown in the accounting records and reported in the balance sheet in accordance with the terms of asset recognition established by legal regulations on accounting and are written off in accordance with the procedure established for writing off the cost of assets of this type.

On disposal of an asset recognized as financial investment (except for those specified in clauses 27, 30 of RAS 19/02), for which no current market value is determined, its value is determined as the initial cost of each reporting unit.

Expenses on each R&D operation performed are written off as normal business expenses using the straight-line method based on the expected useful life of such item starting from the actual application of the obtained results. Useful life of R&D item is determined by a commission specially created by order of the Director General or the Branch Manager (within the limits of his/her powers) at the time of recognition of the work result but not exceeding 5 years.

Expenses recognized as deferred expenses are recorded at specially opened account 76.07 "Deferred Assets" and reported in the balance sheet in other non-current assets or other current assets depending on the maturity.

Deferred assets include:  payments related to voluntary and compulsory insurance of property and employees;  non-exclusive rights to use computer software and databases, provided that the duration of such rights is established in the contract;

 costs of creating databases and bringing them to the level of commercial operation, based on license agreements;  payments for the right to use intellectual property items made in the form of a fixed single payment are written off in accordance with the duration of the right specified in the contract;  other expenses which result in income generation by the Company in future periods.

Deferred assets are written off on the straight line basis depending on their destination in the manner prescribed in the contract or on the one-time basis if the duration is not specified in the contract.

If laws and regulations do not establish the accounting methods applied by the Company, the relevant method shall be developed in the course of the accounting policy compilation based on the current statutory provisions on accounting and the International Financial Reporting Standards (clause 7 of RAS 1/2008).

Changes in accounting policies

Effects of changes in the accounting policy that have had or could have a significant influence on the financial position of the Company, its financial performance and/or cash flows are reflected in accounting statements retrospectively, except when monetary valuation of such effects with regard to the periods preceding the reporting period cannot be made with sufficient reliability.

In the event of changes in the requirements established by laws or federal or industry standards, development or selection of new accounting methods, significant changes in the Company’s operating environment that result in new business operations for which no accounting methods are determined in the accounting policy, a supplement to the accounting policy is drawn up. An accounting policy supplement is executed as a supplement to the Accounting Policy Regulations and is not treated as a new revision thereof.

Changes to the Accounting Policy of Lenenergo PJSC for 2015 include a more detailed description of the aspects of accounting and accounting policy form structuring that are typical for the Company and mainly relate to the Uniform Corporate Accounting Principles (UCAP) implemented in the parent company by Order of Rossiyskie Seti PJSC No. 547 dated 2 September 2013 “On approval of accounting regulations of Rosseti PJSC Group": – the description of capital construction cost allocation in the section "Accounting of capital investments" was clarified; – in the section "Settlements with debtors and creditors", the procedure for creating, recording, and recovery of the provision for doubtful debts and write-off of receivables against the provision for doubtful debts was clarified; – a description of deposit classification as short-term and long-term financial investments depending on the term of deposit was introduced; – a procedure for the creation of a provision for deposit impairment based on calculation of the present value of the deposit was approved.

Amendments to the Accounting policy of Lenenergo PJSC for 2016 include a more detailed description of the aspects of accounting for fixed assets and clarifications of the other accounting principles typical for the Company and are connected with the implemented regulatory documents of Rosseti PJSC related to the revision of the corporate standard – Uniform Corporate Accounting Principles (UCAP) according to the Russian accounting standards (RAS).

3. RESTATEMENT OF COMPARATIVES

The Company did not make any adjustments to the reporting forms for 2015 related to comparative data for the previous reporting periods (2014-2013).

4. INTANGIBLE ASSETS

The structure of intangible assets at the beginning and at the end of the reporting period and the flow thereof are presented in Table 5.1.1 "Availability and flow of intangible assets" of the Notes to the Balance Sheet of the Company.

At 31 December 2015, the Company had no intangible assets with indefinite useful lives.

The Company incurred expenses to acquire non-exclusive rights and licenses. In accounting records, these expenses are recognized on account 76.07 “Deferred assets”, they are long-term and included in Section I of the Balance Sheet “Non- current assets” (line “Other current assets”).

In 2015, the Company incurred costs on acquisition (creation) of intangible assets to the total amount of RUB 21,940 thousand.

5. RESULTS OF RESEARCH AND DEVELOPMENT (R&D)

During the reporting period, the Company applies the straight line method to write-off expenses on R&D over the useful lives of the results of research, development and engineering works (R&D) specified in the following table:

Types of R&D Useful life Development of signal transfer device of relay protection and automation equipment (STD RPAE) for power lines 6-110 kV 36 months Standard “Production asset management” 36 months Research on grid equipment operation modes with different methods of neutral grounding and development of guidelines on how to choose the neutral grounding in power grids 6-35 kV 36 months

The structure of R&D at the beginning and at the end of the reporting period and the flow thereof are presented in Table 5.2.1 “Availability and flow of R&D results” and Table 5.2.2 “R&D in progress and non-formalized and uncompleted transactions on acquisition of intangible assets” of the Notes to the Balance Sheet of the Company.

In 2015, the Company did not incur R&D costs.

6. FIXED ASSETS

The flow and availability of fixed assets and related accumulated depreciation are presented in Table 5.3.1 “Availability and flow of fixed assets” of the Notes to the Balance Sheet of the Company.

At 31 December 2015, the carrying amount of fully depreciated fixed assets excluding depreciation was RUB 51,537 thousand (31 December 2014: RUB 45,763 thousand; 31 December 2013: RUB 45,939 thousand).

At 31 December 2019, Lenenergo PJSC had no fixed assets pledged as security for bank loans.

Loan and borrowing costs of RUB 1,196,694 thousand (2014: RUB 809,817 thousand) were capitalized during the reporting period.

Fixed assets include items which consumer properties do not change over time, i.e. are not subject to depreciation. Information on the carrying amount of such items at 31 December is presented in the table below:

Fixed asset items 2015 2014 2013 Land plots 109,219 107,416 79,465 Total 109,219 107,416 79,465

Information on changes in the cost of fixed assets at which they are recognized in accounting records (completion, additional equipment, reconstruction, partial liquidation and revaluation of fixed asset items) is presented in Table 5.3.3 of the Notes to the Balance Sheet.

Information on the flow and availability of construction-in-progress items and uncompleted transactions on acquisition, upgrading, etc. of fixed assets is presented in Table 5.3.5 of the Notes to the Balance Sheet.

7. FINANCIAL INVESTMENTS

Information on the availability and flow of financial investments in the reporting period is presented in Table 5.4.1 of the Notes to the Balance Sheet.

At 31 December, the value of financial investments was as follows:

2015 2014 2013 Equity financial investments for which no current market value is determined less the provision for impairment in the amount of (2015: RUB 0; 2014: RUB 49 318; 2013: RUB 49 318) thousand. 16,188,131 901,291 897,795 Debt financial investments for which no current market value is determined 5,756,826 6,463,973 6,284,109 Including: Non-current portion 1,889,826 1,703,717 - Current portion 3,867,000 4,760,256 6,284,109

7.1. Equity financial investments

Equity financial investments recognized in the balance sheet of the Company at 31 December 2019 and classified as long- term investments in subsidiaries, affiliates and other companies amounted to RUB 16,188,131 thousand.

Name Type of Quantity Equity Year of Value at 31 Value at 31 Value at 31 shares interest investment December December December in the 2015 2014 2013 share capital CJSC Kurortenergo Ordinary 1,599 Preference 77 98.13% 2010 517,140 517,140 517,140 CJSC Tsarskoye Selo Ordinary 7,229 Energy Preference 1,272 Company 96.96% 2010 372,313 372,313 372,313 PJSC Northwest Energy Ordinary 74,180,864 Management Company Preference 38,063,689 12.51% 2005 49,381 - - CJSC Ordinary 1,000 Lenenrgospetsremont 100% 1999 7,338 7,338 7,338 JSC Energy Service Ordinary 1,000,000 Company Lenenergo 100% 2011 1,000 1,000 1,000 CJSC Akvatron Ordinary 2 1.33% 1991 - - - PJSC Federal Test Center Ordinary 3,500 1% 2014 3,500 3,500 - JSC Petrodvorets Power Ordinary 6,232 Grid 60.1% 2015 800,000 - -

Name Type of Quantity Equity Year of Value at 31 Value at 31 Value at 31 shares interest investment December 2015 December December in the 2014 2013 share capital SPb ES JSC Ordinary 357,692 100% 2015 14,437,522 Total 16,188,131 901,291 897,795

On 23.12.2015, the city of Saint Petersburg represented by the Saint Petersburg Property Relations Committee, as part of measures to increase the share capital of Lenenergo PJSC, transferred to Lenenergo PJSC shares in SPb ES JSC and JSC Petrodvorets Power Grid as payment for additional ordinary shares of Lenenergo PJSC.

At 31 December 2015, the provision for impairment of financial investments relating to the shares of Northwest Energy Management Company PJSC in the amount of RUB 49,318 thousand was reversed as a result of improvement of the financial and economic condition of Northwest Energy Management Company PJSC in 2015.

7.2. Debt financial investments

The Company has debt financial investments represented by deposits. At 31 December 2015, the Company's deposits in the credit institutions amounted to RUB 14,487,000 thousand (31 December 2014: RUB 13,367,045 thousand, 31 December 2013: RUB 6,284,109 thousand).

Breakdown of deposits at 31 December 2015 is presented below:

Deposits by maturity Interest rate Maturity date Amount, RUB (from/to) thousand Bank Tavrichesky (JSC) 0.51 09 April 2035 10,620,000 11 January 2016 VTB Bank (PJSC) 10.8 18 January 2016 3,867,000 Total 14,487,000

At 31 December 2015, debt financial investments for which the current market value is not determined were measured at estimated value. The estimated value of debt financial investments of the Company is determined as the amount of economic benefits that the Company expects to receive from these financial investments in the ordinary course of business. At the beginning of 2015, the Central Bank of the Russian Federation decided to launch a financial rehabilitation procedure in respect of Bank Tavrichesky. One of the conditions for the financial rehabilitation was the placement by the Company of a subordinated deposit for a period of 20 years at a non-market interest rate (0.5%).

Currently, State Corporation Deposit Insurance Agency (DIA) of the Russian Federation exercises full control over the process of financial rehabilitation of Bank Tavrichesky. The Bank attracted funds of the DIA, which helps to improve financial performance and reduce risks of non-performance of its obligations to creditors. Analysis of the financial activities and statistical data of Bank Tavrichesky over the past year indicates the leveling of negative trends that could affect the Bank’s financial stability in the future.

Despite the circumstances referred to in the previous paragraph, management of the Company, while observing the principle of prudence to assess the probability of the Bank's failure to perform its obligations, assumes the probability of losing money on these financial investments. In this context, a provision for impairment of financial investments in the amount of difference between the carrying value and the estimated value of such investments is recognized in accounting statements at 31 December 2015 and 31 December 2014. The total amount of the provision at 31 December 2014 was RUB 8,606,789 thousand, at 31 December 2015 – RUB 8,730,174 thousand

Due to the possibility of negative trends in the non-fulfillment by the Bank of its obligations, deferred tax asset in the amount of RUB 1,731,221 thousand was recognized in the accounting statements, which will be refunded if the subordinated deposit is written off as irrecoverable debt for its recognition for tax purposes as bad debt within non-operating expenses in accordance with the Tax Code of the Russian Federation.

At 31 December 2019, the Company had no loans granted.

8. INVENTORIES

Information on the availability and flow of inventories in the reporting period is presented in Table 5.5.1 of the Notes to the Balance Sheet.

At 31 December 2015, there were no inventories in pledge.

9. ACCOUNTS RECEIVABLE

Information on the availability and flow of accounts receivable in the reporting period is presented in Table 5.5.1 of the Notes to the Balance Sheet.

At 31.12.2015, total accounts receivable of the Company amounted to RUB 7,399,020 thousand, which is RUB 5,120,864 thousand less than at the beginning of the year when total accounts receivable amounted to RUB 12,519,884 thousand.

Total amount of accounts receivable included:  long-term receivables in the amount of RUB 502,467 thousand (6.01% of total accounts receivable);  short-term receivables in the amount of RUB 6,896,553 thousand (93.99% of total accounts receivable).

No. Accounts receivable Balance At 31 December At 31 December At 31 December sheet line 2015 2014 2013 code 1 Total 1230 7,399,020 12,519,884 9,782,364 1.1 Long-term accounts receivable 1231 502,467 752,712 323,534 1.1.1 Buyers and customers on grid connection 123101 25,408 202,527 2,983 1.1.2 Advances issued 123205 3,851 3,852 32,880 1.1.3 Other long-term receivables, including: 123206 473,208 546,333 287,671 Petroestate LLC 71,721 71,721 71,721 VAT on long-term advances received 399,093 469,980 211,962 Other 2,394 4,632 3,988 1.2 Short-term accounts receivable 1232 6,896,553 11,767,172 9,458,830 1.2.1 Buyers and customers, including: 123201 4,110,681 6,866,073 5,894,969 1.2.1.1 Non-contractual power consumption 523,967 724,941 554,592 1.2.1.2 Buyers and customers on grid connection 713,954 1,672,721 2,102,797 1.2.1.3 Buyers and customers on power transmission 2,771,021 4,351,298 3,151,084 1.2.1.4 Income from lease 62,480 30,776 34,101 1.2.1.5 Buyers and customers on other activities 39,259 86,337 52,395 1.2.2 Advances issued 123205 98,720 1,051,051 540,122

1.2.2.1 To suppliers of materials 1,641 4,344 4,309 1.2.2.2 To repair companies - 15,403 125 1.2.2.3 To service providers 97,079 1,031,304 535,688 1.2.3 Other debtors 123206 2,687,152 3,850,048 3,023,739 1.2.3.1 Excess payment of taxes 417,764 1,076,297 379,176 1.2.3.2 Sundry debtors 2,269,388 2,773,751 2,644,563 VAT on short-term advances received 399,094 1,695,860 2,241,606 under contracts with PJSC Non- Governmental Pension Fund of Power Industry 250,606 142,603 139,750 Other sundry debtors, including: 1,619,688 931,055 258,699 Interest accrued under deposit agreements 49,847 748,366 -

10. CASH AND CASH EQUIVALENTS

At 31 December, cash included:

2015 2014 2013 Cash in hand and at bank, RUB 24,414,528 1,165,170 3,369,560 Cash equivalents 2,559 1,341 840 Total 24,417,087 1,166,511 3,370,400

At 31 December 2015, the Company has the ability to raise the following additional funds in the total amount of RUB 4,009,777 thousand: – RUB 3,000,000 thousand under revolving loan facilities opened to the Company; – RUB 1,009,777 thousand of loan resources in the form of an overdraft.

In 2015, the Company allocated RUB 8,263,821 thousand for innovation and modernization of production.

11. OTHER ASSETS

At 31 December, other assets included the following (RUB thousand):

Types of assets 2015 2014 2013 Non-current Current Non-current Current Non-current Current Expenses on acquisition of non- exclusive rights and licenses 57,050 - 77,737 - 86,405 - Expenses on purchase of capacity by the Company from grid companies for further grid connection of customers 396,524 - 475,623 - 537,167 - Expenses on insurance of property and employees 25,349 - 13,778 - 8,643 - VAT on advances issued for capital construction and acquisition of fixed assets - 6,293 - 181460 - 82,417 Shortages and losses due to impairment of assets (account 94) - 543,872 - - - 82,417 Total 478,923 550,165 567,138 181,460 632,215 82,417

12. SHARE CAPITAL

At 31 December 2015, share capital of the Company is fully paid and amounts to RUB 1,752,079 thousand. At 31 December 2015, the number of shares issued and fully paid was 1,752,079 thousand shares (31 December 2014: 1,752,079 thousand shares, 31 December 2013: 1,228,325 thousand shares). The par value of each ordinary and preference share is RUB 1.

Ordinary registered uncertificated shares, qty 1,658,814,839 Class A preference registered uncertificated shares, qty 93,264,311

At 31 December 2015, the Company has no shares issued but not paid or paid partially. The Company has no treasury shares at the reporting date. SPb ES JSC, a subsidiary of Lenenergo PJSC, owns 300 ordinary registered uncertified shares of Lenenergo PJSC and 200 Class A preference registered uncertified shares of Lenenergo PJSC (0.00003% of the share capital).

Number of outstanding shares Share capital Preference shares Ordinary shares (RUB thousand) At 31 December 2013 93,264,311 1,135,061,313 1,228,326 Issue of shares - 523,753,526 At 31 December 2014 93,264,311 1,658,814,839 1,752,079 At 31 December 2015 93,264,311 1,658,814,839 1,752,079

On 10 September 2013, additional issue of 926,876,304 ordinary shares of Lenenergo PJSC was registered.

Through the exercise of their preemptive right, Rosseti PJSC acquired 495,049,505 ordinary shares to the amount of RUB 3 billion, other shareholders acquired 18,904,97 ordinary shares to the amount of RUB 114 thousand.

Through open subscription, PJSC Rossetti acquired 28,685,116 ordinary shares to the amount of RUB 173,832 thousand.

On 16 October 2014, the Report of Additional Issue was registered.

As a result of the additional issue, 523,753,526 ordinary shares to the amount of RUB 3,173,946 thousand were placed.

On 15 January 2015, due to expiration of 3 months following the date of state registration of the report of additional issue of ordinary registered shares of JSC Lenenergo, the individual number of the additional issue - 003D (state registration number: 1-01-00073-A-003D) (Notice of the Bank of Russia No. 52-4/290 dated 01.16.2015) was cancelled by the decision of the Bank of Russia.

On 24 November 2015, the Extraordinary General Meeting of Shareholders decided to increase the share capital of the Company through an additional issue of shares. On 3 December 2015, additional issue of 18,882,455,451 ordinary shares of Lenenergo PJSC was registered (state registration number: 1-01-00073-A-004D) (Notice of the Bank of Russia No. 52- 4/16085 dated 14.12.2015).

The major shareholders, Rosseti PJSC and the city of Saint Petersburg represented by the Saint Petersburg Property Relations Committee, participated in the additional issue of shares through the exercise of their preemptive right.

Information on participation of the major shareholders in the additional issue through the exercise of their preemptive right at 31.12.2015:

Shares purchased Date of Shareholder Value, RUB Form of payment Quantity, psc. application million Securities: Federal loan bonds (FLB) of issues 29006RMFS, 4,577,968,527 32,000 24.12.2015 Rosseti PJSC 29007RMFS, 29008RMFS, 29009RMFS, 29010RMFS: in the quantity of 32,000,000 bonds at par value of RUB 1,000. 83,012,447 580.257 Cash. 29.12.2015 Securities: Saint 1) 357,692 ordinary shares of SPb ES JSC. The estimated Petersburg value of shares amounted to RUB 14,437,522,196 and was represented determined by the Board of Directors of Lenenergo PJSC by the 2,179,903,032 15,237,522 based on the share market value evaluation report. 22.12.2015 Property 1) 6,232 ordinary shares of Petrodvorets Power Grid JSC. Relations The estimated value of shares amounted to RUB 800,000,000 Committee and was determined by the Board of Directors of Lenenergo PJSC based on the share market value evaluation report.

Cash and securities received by the Company as a result of the exercise of the preemptive right for acquisition of shares of Lenenergo PJSC in the amount of RUB 47,817,779 thousand, due to the possibility of recognizing capital increase upon payment of the additional issue before the state registration of the issue itself, are shown as a separate line "Capital (before registration)" in the balance sheet section "Capital and reserves", without separation of the amount of share capital increase and share premium.

Information on shareholders owning 1% or more of the Company voting shares at 19.10.2015*:

Name % of ordinary shares % of share capital Rosseti PJSC 68.12 64.49 Saint Petersburg represented by the Property Relations Committee 18.18 17.22 IDGC of the Urals JSC 4.89 5.93 ENERGYO SOLUTIONS RUSSIA (CYPRUS) LIMITED 2.26 2.17 VTB Bank (PJSC) 1.53 2.98 other 5.01 7.21 Total 100.00 100.00 *at the last record date

In 2015, the Annual General Shareholders' Meeting of the Company decided to pay no dividends on ordinary and preference shares for 2014.

13. BORROWINGS

At 31 December 2015, borrowings included (RUB thousand, by the principal amount):

2015 2014 2013 Short-term Long-term Short-term Long-term Short-term Long-term Bank loans 7,000,000 22,700,000 1,400,000 42,188,440 3,813,440 23,406,037 Bonds 6,000,000 2,400,000 - 6,000,000 - 6,000,000 13,000,000 25,100,000 1,400,000 48,188,440 3,813,440 29,406,037 Total 38,100,000 49,588,440 33,219,477

The amount of accrued interest for the use of loans and borrowings was RUB 4,948,802 thousand in 2015, RUB 3,558,496 thousand in 2014, RUB 2,585,857 thousand in 2013.

In 2015, the amount of loan and borrowing expenses included in other expenses and in investment assets was RUB 3,752,108 thousand and RUB 1,196,694 thousand, respectively; in 2014 - RUB 2,765,977 thousand and RUB 809,818 thousand, respectively; in 2013 - RUB 2,217,089 thousand and RUB 401,732 thousand, respectively.

At 31 December 2015, borrowings had the following structure by principal amount:

Balance at Raised Repaid Reclassification Balance at 01.01.2015 31.12.2015 Short-term: 1,400,000 2,400,000 5,425,000 17,025,000 13,000,000 Loans 1,400,000 0 5,425,000 11,025,000 7,000,000 Borrowings 0 0 0 6,000,000 6,000,000 Long-term: 48,188,440 36,560 8,500,000 (17,025,000) 25,100,000 Loans 42,188,440 36,560 8,500,000 (11,025,000) 22,700,000 Borrowings 6,000,000 2,400,000 0 (6,000,000) 2,400,000 TOTAL 49,588,440 2,436,560 13,925,000 - 38,100,000

The weighted average interest rate at the end of the reporting period was 9.42% per annum.

In 2015, the Company repaid loans to the amount of RUB 13,925,000 thousand, including:  RUB 1,400,000 thousand were repaid in accordance with the terms of loan agreements;  RUB 12,525 thousand were repaid ahead of schedule due to high interest rate.

The schedule of payments on long-term borrowings (by principal amount) is presented below:

Year of repayment Amount, RUB thousand 2016 - 2017 11,239,115 2018 13,860,885

All loans and borrowings were raised in Russian rubles, and were unsecured.

In 2015, the Company obtained loans and borrowings for innovation and modernization of production to the total amount of RUB 2,436,560 thousand. At 31 December 2015, RUB 2,436,560 thousand were utilized. The Company incurred expenses in the amount of RUB 24,000 thousand related to obtaining of loans and borrowings for the acquisition (creation) of investment assets under projects related to innovation and modernization of production.

14. ESTIMATED LIABILITIES

The flow of estimated liabilities is presented below:

Provision for Provision for Provision for Other provisions Total upcoming payment of legal payment of leave annual proceedings allowances remunerations At 31 December 2013 115,811 127,874 301,332 464,836 1,009,853 Recognized in the reporting period 377,501 106,514 310,246 4,367,467 5,161,728 Written off to record costs or accounts payable (403,166) (98,037) (162,086) (1,510,723) (2,174,012) Written off due to redundancy or termination of the conditions for recognition - (26,321) (954) - (27,275) At 31 December 2014 90,146 110,030 448,538 3,321,580 3,970,294 Recognized in the reporting period 324,252 127,315 626,558 1,565,576 2,643,701 Written off to record costs or accounts payable 329,185 291,444 2,436,648 3,057,277 Written off due to redundancy or termination of the conditions for recognition At 31 December 2015 85,213 237,345 783,652 2,450,508 3,556,718

At 31 December, estimated liabilities are analyzed as follows:

2015 2014 2013 Total amount of provisions included: Long-term - - - Short-term 3,556,718 3,970,294 1,009,853 Total 3,556,718 3,970,294 1,009,853

Provisions for upcoming payment of employee leave allowances

The provision was created for the Company’s upcoming payment of employees’ leaves not utilized at 31 December 2015. It is expected that the balance of the provision at 31 December 2015 will be used in the first six months of 2020. The management believes that the actual payments of leave allowances will not exceed the amount of the provision reported in the accounting statements at 31 December 2015. At 31.12.2015, the amount of the provision was RUB 85,213 thousand.

Provision for upcoming payment of performance-based remunerations for the reporting period

The provision was created for the Company’s upcoming payment of employees’ performance-based remunerations for the reporting period that were not paid at 31 December 2015. At 31.12.2015, the amount of the provision was RUB 237,345 thousand.

Provision for legal proceedings

Provision for legal proceedings in progress at the reporting date includes arbitration cases resolved by the second instance court not in favour of Lenenergo PJSC and the likelihood of a favourable outcome for Lenenergo PJSC has been assessed as low. At 31 December 2015, the value of this type of liabilities was RUB 1,740,997 thousand, with a total of 26 cases, the largest of which are as follows: – Zapelektromontazh LLC to the amount of RUB 957,346 thousand under the construction and assembly contract (bankruptcy stage), – FGC UES PJSC to the amount of RUB 598,744 thousand under the power transmission contract, – Petrodvorets Power Grid JSC to the amount of RUB 52,667 thousand under the power transmission contract, – SPb ES JSC to the amount of RUB 42,609 thousand under the power transmission contract.

Net presentation of the provision for accounts receivable from Zapelektromontazh LLC: At 31.12.2013, accounts receivable from Zapelektromontazh LLC to Lenenergo PJSC were recognized in the balance sheet based on enforceable court decisions rendered in favour of the Company:  А56-71367/2011;  under cases No. A56-21965/2012 and A56-17948/2012 consolidated in one case No. A56-17948/2012

Legal proceedings on case No. А21-8911/2013 for the bankruptcy of Zapelektromontazh LLC were started on 07.11.2013. As of the current date, the proceedings are in progress. Lenenergo PJSC was included in the list of creditors.

Taking into account the initiation of legal proceeding No. A21-8911/2013, the Company created a provision for doubtful debts to the amount of RUB 957,346,267.23: – under contract No. 06-3849 to the amount of RUB 925,460,213.65; – under contract No. 07-1221 to the amount of RUB 31,886,053.58.

At 31.12.2015, there are ongoing legal proceedings on a counter-claim of Zapelektromontazh LLC.

At the end of 2015, a management decision to reclassify the provision for Zapelektromontazh LLC from the provision for doubtful debts to the provision for other contingent liabilities (court cases) was made. The decision is based on the fact that the nature of the debt is associated with litigation arising from favourable decisions on debt recovery in favour of Lenenergo PJSC, but with the continuing bankruptcy proceedings, considering also that the Company continues to assess the probability of foreclosure as low.

Since these receivables and the provision for them have mixed aspects of two types of provisions, the Company continues to apply the requirement of clause 35 of RAS 4/99 "Accounting statements" and reports accounts receivable net of the amount of the created provision in the statements for 2015.

Other provisions

Provision for other contingent liabilities includes a provision for bonuses related to the commissioning of facilities and a provision for disputes that have not been settled out of court.

A provision for bonuses related to the commissioning of facilities was created in respect of facilities commissioned in 2014, 2015. At 31.12.2015, the amount of the provision was RUB 146,442 thousand.

A provision for disputes that have not been settled out of court and remain pending at the reporting date includes claims under consideration and claims considered by arbitration courts of the first instance wherein a decision was not issued in favour of Lenenergo PJSC and the likelihood of a favourable outcome for Lenenergo PJSC has been assessed as low.

At 31 December 2015, the value of this type of liabilities was RUB 2,017,701 thousand, the largest of which are as follows: – SPb ES JSC to the amount of RUB 1,080,372 thousand under the power transmission contract, – Petrodvorets Power Grid JSC to the amount of RUB 290,414 thousand under the power transmission contract, – Petroenergocontrol LLC to the amount of RUB 4,265 thousand under the power transmission contract, – United Energy Company JSC to the amount of RUB 425,146 thousand under the power transmission contract, – FGC UES PJSC to the amount of RUB 217,504 thousand under the power transmission contract.

Disputes with related grid companies arose in respect of the scope and value of power transmission services provided. In the balance sheet, the value of recognized estimated liability is reported in the section "Estimated liabilities". It is expected that court decisions on the claims will be made no later than the first half of 2015.

The amount of the provision for other liabilities not settled with counterparties is recognized as other expenses.

In 2015, a provision for other contingent liabilities was created in respect of tax risks based on the results of the field tax audit for 2012-2013. The amount of the provision included disagreements for which the likelihood of resolving disagreements with the tax body in favour of the Company has been assessed as low. At 31.12.2015, the amount of the provision was RUB 282,663 thousand.

The flow of provisions for estimated liabilities is presented in Table 5.7.1 “Estimated liabilities” of the Notes to the Balance Sheet.

15. ACCOUNTS PAYABLE

Information on the availability and flow of accounts payable in the reporting period is disclosed in Table 5.6.5 of the Notes to the Balance Sheet.

At 31 December 2015, total accounts payable of the Company amounted to RUB 32,513,111 thousand, which is RUB 236,934 thousand less than at the beginning of the year when total accounts payable amounted to RUB 32,570,045 thousand.

The total amount of accounts payable included:  long-term payables in the amount of RUB 2,744,661 thousand (7.78% of total accounts payable);  short-term payables in the amount of RUB 32,513,111 thousand (92.22% of total accounts payable).

Accounts payable are analyzed as follows:

No. Accounts payable Balance At 31 December At 31 December At 31 December sheet line 2015 2014 2013 code 1.1. Long-term accounts payable 1450 2,744,661 3,213,499 1,906,733 Advances for grid connection 2,616,280 3,080,959 1,770,333 1.2. Accounts payable 1520 32,513,111 32,570,045 32,917,612 1.2.1. Payables to suppliers and contractors 1521 18,171,351 19,002,101 13,991,689 To construction companies 15211 5,566,908 9,385,036 6,693,461 To repair companies 15212 400,449 545,674 617,470 To other suppliers and contractors, including: 15213 12,203,994 9,071,391 6,680,758 for services of FGC UES PJSC 5,981,978 4,672,356 3,728,705 for power transmission services of other grid companies 5,052,675 2,903,969 1,574,624 Sundry suppliers and contractors 1,169,341 1,495,066 1,377,429 to other sundry suppliers and contractors, including: 613,695 705,097 643,107 Payable under grid connection contracts 127,405 114,759 143,701 Payable under grid connection agency contracts 16,699 14,003 12,377 Suppliers of inventories other than fuels and lubricants 118,144 59,687 146,066 1.2.2. Wages payable 1523 283,808 226,929 234,879 1.2.3. Payables to extra-budgetary funds 1524 105,888 86,304 75,606 1.2.4. Taxes payable 1525 305,529 225,400 642,283 1.2.5. Advances received 1526 11,550,614 11,030,377 13,800,034 for grid connection 11,481,825 10,948,173 13,773,589 other advances received 68,789 82,204 26,445 1.2.6. Other creditors 1528 2,095,921 1,998,934 4,173,121 Settlements on legal proceedings 35,679 13,484 28,370 ROSSETI PJSC (settlements on issue of shares) - 3,000,000 Security received 2,025,975 1,961,063 867,376 Other 34,267 10,384 264,998

Table 5.6.6 of the Notes to the Balance Sheet provides breakdown of overdue accounts payable at 31 December 2013, 2014 and 2015 formed as a result of the analysis of contractual liabilities of the Company regarding debt payment.

Payables to state extra-budgetary funds

At 31 December, payables to state extra-budgetary funds are analyzed as follows: 2015 2014 2013 Insurance contributions - total 85,238 85,238 74,072 including: Social Insurance Fund - - 350 Pension Fund 81,035 73,985 63,655 Compulsory Medical Insurance Fund 23,418 11,253 10,067 Compulsory Social Insurance Fund (compulsory insurance against industrial accidents and occupational diseases) 1,435 1,066 1,534 Total payables to state extra-budgetary funds 105,888 86,304 75,606

At 31 December, taxes payable include:

2015 2014 2013 Corporate income tax 3,715 - 476,837 Value added tax 53,450 - Property tax 191,818 176,928 116,694 Personal income tax 53,330 46,265 46,538 Other 3,216 2,207 2,214 Total taxes payable 305,529 225,400 642,283

At 31 December 2015, 2014 and 2013, the Company had no overdue tax liabilities.

16. INCOME AND EXPENSES

Information on revenue (net) from sale of goods, products, works, services (excluding VAT, excise duties and other similar obligatory payments) (RAS 9/99), cost of goods, products, works, services sold, business and administrative expenses is presented below (RAS 10/99):

Activities Revenue (net) from Cost of goods, Gross profit/(loss) sale of goods, products, works, products, works, services sold services (excluding VAT, excise duties and other similar payments) from power transmission 40,684,173 43,560,443 (2,876,270) from grid connection 2,865,376 435,207 2,430,169 from industrial work and services 177,112 64,828 112,284 Total for 2015 43,726,661 44,060,478 (333,817) from power transmission 36,261,449 38,756,444 (2,494,995) from grid connection 8,248,994 390,068 7,858,926 from industrial work and services 211,665 110,040 101,625 Total for 2014 44,722,108 39,256,552 5,465,556

Saint Petersburg Power Supply Company JSC is the buyer accounting for at least 10% of the total revenue of the Company from sales to third-party buyers. In 2015, total revenue from sale of power transmission services to Saint Petersburg Power Supply Company JSC amounted to RUB 30,223,833 thousand (excluding VAT). In 2014, it amounted to RUB 26,769,521 thousand (excluding VAT).

Revenue from the connection to the grid of Lenenergo PJSC received under contracts providing for payment in kind includes 25 companies and amounts to RUB 1,243,982 thousand (excluding VAT).

Information on the cost of goods (work, services) produced and sold in the reporting period broken down by cost elements is presented in Table 2.1 of the Notes to the Balance Sheet and Profit and Loss Statement.

Cost breakdown by cost elements (RUB thousand):

Cost elements 2015 2014 Production work and services provided by third-party companies 26,037,802 22,103,458 Depreciation 9,951,946 8,972,034 Labour costs 3,305,571 3,269,620 Repairs 966,879 1,234,108 Social security contributions 962,870 860,058 Material costs 401,738 404,795 Other expenses, including: 2,433,672 2,412,479 Taxes included in cost 990,927 744,676

Rentals 483,137 458,163 Insurance contributions 137,319 149,311 Sundry expenses 180,515 328,302 Other services of third-party companies 591,888 732,027 Total 44,060,478 39,256,552

In 2015, the cost of sales included general and administrative expenses to the amount of RUB 996,503 thousand, and in the comparable period of 2014 - RUB 1,671,647 thousand.

Significant reduction in general expenses in the reporting year results from the revision of the Company's method of recognizing direct and allocated direct costs and allocation of indirect general costs.

From 2015, the value of indirect general costs depends on the procedure for allocation of salaries of departments to direct salaries of core production staff established by the Personnel Management and Organizational Design Department in the reporting period.

17. OTHER INCOME AND EXPENSES

In 2015, the following other income and expenses were received and incurred:

Other income 2015 2014 Proceeds from the provision of the Company's assets for temporary use, for a fee 139,358 145,459 Proceeds from sale of fixed and other assets other than cash, products, goods 33,353,900 39,715 Fines and penalties for breach of contract terms 500,340 32,480 Donated assets - 2,939 Profit of previous years revealed in the reporting year 199,528 45,209 Property recognized by results of inventory audit 54,546 78,298 Recovery of allowances due to redundancy or termination of the conditions for recognition 1,600,802 1,453,686 Accounts payable with expired period of limitation 4,291 24,147 Income from identified non-contractual power consumption 695,322 1,528,522 Cost of assets recognized after dismantling or disposal of property 16,042 33,277 Other 181,279 238,781 Total other income 36,745,408 3,622,513 Other expenses 2015 2014 Expenses related to sale, disposal or other write-off of fixed and other assets other than cash (except for foreign currency), goods, products 33,330,128 30,031 Expenses related to payment for services provided by credit institutions 919 5,278 Transfers to provisions for estimated liabilities / provisions for future expenses 4,162,712 4,936,865 Impairment of financial investments 226,149 8,606,789 Fines and penalties for breach of contract terms 143,343 103,959 Loss of previous years revealed in the reporting year 932,629 957,511 Expenses on identified non-contractual power consumption 194,078 263,825 Charity-related contributions 48,649 24,980 Accounts receivable with expired period of limitation 30,231 142,149 Disposal of assets without income 148,439 50,008 Legal expenses and enforcement costs 183,593 170,047 Expenses on sport events, cultural and educational activities 20,354 37,265 Financial assistance and other payments from profit 200,201 271,643 Cost of securities and financial investments servicing 52,949 12,614

Other income 2015 2014 Other 492,823 847,912 Total other expenses 40,167,197 16,460,876

As described above in Section 12 "Share Capital", Lenenergo PJSC received the following securities from its major shareholder Rosseti PJSC, participating in the additional issue of shares through the exercise of its preemptive right:

Federal loan bonds (FLB) of issues 29006RMFS, 29007RMFS, 29008RMFS, 29009RMFS, 29010RMFS: in the quantity of 32,000,000 bonds at par value of RUB 1,000.

The received securities were sold and cash received from the sale in the amount of RUB 32 billion are included in the accounts of settlements with other sundry debtors and creditors until the recognition of the issue and capital increase. This transaction is disclosed separately in the Profit and Loss Statement.

In accordance with the terms of the agreement for the purchase of shares of Lenenergo PJSC paid for by federal loan bonds, when selling the federal loan bonds the Company shall transfer to Rosseti PJSC the amount of the coupon yield received upon payment thereof.

The securities were sold by Lenenergo PJSC on 25.12.2015 under securities sale agreements Nos. 15-9288 and 15-9289 dated 25.12.2015. Coupon yield accrued on the federal loan bonds amounted to RUB 1,305,021 thousand. The accrued coupon income on securities for the period from 23.12.2015 to 25.12.2015 when the Company held them amounted to RUB 24,768 thousand. This amount is reported in other income in the Profit and Loss Statement.

18. CORPORATE INCOME TAX

In 2015, business activities resulted in accounting loss before tax in the amount of RUB 6,528,534 thousand and tax loss in the amount of RUB 1,382,881 thousand. Current income tax for the reporting year amounts to RUB 0. Deferred tax asset for the loss of the reporting year amounted to RUB 276,576 thousand. Contingent income tax gain amounted to RUB 1,305,707 thousand.

The total amount of tax assets and liabilities based on tax differences affecting the adjustment of contingent income tax gain was RUB 1,304,707 thousand:  Permanent tax liability – RUB 958,143 thousand;  Deferred tax asset – RUB 618,284 thousand;  Deferred tax liability – RUB (270,720) thousand.

In 2015, the Company adjusted its liabilities on tax payments for previous years:  The Company reduced tax accrued earlier for 2012, 2013 and 2014 in the amount of RUB 559,602 thousand based on the results of court decisions rendered not in favor of the Company and entered into force regarding settlement of disputes on power transmission with related grid companies.

In accordance with the accounting policy of Lenenergo PJSC for tax purposes, the Company calculates and pays taxes and fees in accordance with the tax legislation of the Russian Federation, tax legislation of the constituent entities of the Russian Federation, tax regulations of local governments.

For tax purposes, the Company recognizes revenue from sales as related to value added tax and profit tax on an accrual basis, other taxes – in accordance with the Tax Code of the Russian Federation, tax legislation of the Russian Federation and the constituent entities of the Russian Federation. Deferred tax assets and deferred tax liabilities are disclosed separately in the statements.

Reconciliation between income tax expenses and accounting profit is presented in Table 2.3 of the Notes to the Balance Sheet of the Company.

19. EARNINGS PER SHARE

The Company has no potential dilutive ordinary shares; accordingly, diluted earnings per share are equal to basic earnings per share.

2015 2014 Weighted average number of outstanding ordinary shares (thousand) 1,658,815 1,178,707 Less weighted average number of own shares redeemed (thousand) - - Weighted average number of outstanding ordinary shares (thousand) 1,658,815 1,178,707 Profit/(loss) for the year attributable to shareholders of the parent company (5,916,496) (7,967,844) Basic and diluted earnings/(loss) per share (RUB) (3.5667) (6.7598)

20. NET ASSETS

Information on the net assets in the reporting period is presented in Table 3.4 of the Notes to the Balance Sheet and Profit and Loss Statement.

Change in the value of net assets of Lenenergo PJSC in the context of comparable reporting periods is as follows (RUB thousand): – 113,336,124 at 31.12.2015, which is RUB 41,895,380 thousand more than in the previous reporting period; – 71,440,744 at 31.12.2014, which is RUB 4,900,148 thousand less than in the previous reporting period when net assets amounted to RUB 76,340,892 thousand.

21. RELATED PARTIES

In the course of its financial and business operations, the Company conducts transactions with companies that are related parties.

The following related parties were identified for the purposes of these accounting (financial) statements in accordance with RAS 11/2008 "Information on Related Parties":

№ Full name of a corporate entity Corporate entity’s Reason to consider a Equity interest Equity interest or given name, patronymic, registered address or party to be related of the related of the Company surname of an individual individual’s place of party in the in the share residence Company’s capital of the share capital, related party, % % 6. Saint Petersburg Power Grid, Russian Federation, The Company holds 0.00003 100% Joint Stock Company Saint Petersburg more than 50% of the share capital of the company 7. Petrodvorets Power Grid, Open 198510, Russian The Company holds - 60.1% Joint Stock Company Federation, Saint more than 50% of the Petersburg, share capital of the Petrodvorets, ul. company Volodi Dubinina, 9 Key management personnel 6. Roman Nikolayevich Saint Petersburg The person is the sole - - Berdnikov executive body (Acting Director General), a member of the collegial executive body (Management Board) of the Company 7. Egor Vyacheslavovich - The person is a member of - - Prokhorov the Board of Directors of the Company 8. Aleksandr Sergeyevich - The person is a member of - - Kalinin the Board of Directors of the Company 9. Pavel Nikolayevich Snikkars - The person is a member of - - the Board of Directors of the Company 10. Dmitry Viktorovich Koptin - The person is a member of - - the Board of Directors of the Company 11. Andrey Sergeevich - The person is a member of - - Bondarchuk the Board of Directors of the Company 12. Evgenia Evgenyevna - The person is a member of - - Rozova the Board of Directors of the Company 13. Vladimir Vladimirovich - The person is a member of - - Sofyin the Board of Directors of the Company 14. Andrey Sergeevich Kolyada - The person is a member of - - the Board of Directors of the Company 15. Svetlana Semenovna - The person is a member of - - Zholnerchik the Board of Directors of the Company 16. Khasan Mushtafayevich - The person is a member of - - Likhov the Board of Directors of the Company 17. Yury Kazbekovich Zafesov - The person is a member of - - the Board of Directors of the Company

№ Full name of a corporate Corporate entity’s Reason to consider a party to Equity Equity entity or given name, registered address or be related interest of the interest of patronymic, surname of an individual’s place of related party the Company individual residence in the in the share Company’s capital of the share capital, related party, % % 18. Vasily Vladislavovich - The person is a member of - - Nikonov the Board of Directors of the Company 19. Sergey Yuryevich Lebedev - The person is a member of - - the Board of Directors of the Company 20. Maksim Sergeevich Saint Petersburg The person is a member of - - Artemyev the collegial executive body (Management Board) of the Company 21. Maksim Anatolyevich Saint Petersburg The person is a member of - - Ivanov the collegial executive body (Management Board) of the Company 22. Aleksandr Dmitriyevich Saint Petersburg The person is a member of - - Nikonov the collegial executive body (Management Board) of the Company Other related parties 23. Tyumenenergo, Power Russia, 628412 Tyumen The company is a member of - - Industry and Electrification Region, Khanty-Mansi the same group of persons as Joint Stock Company Autonomous Okrug – the Company Yugra, Surgut, ul. Universitetskaya, 4 24. Interregional Distribution Russia, 410031, Saratov, The company is a member of - - Grid Company of the Volga, ul. Pervomayskaya, the same group of persons as Public Joint Stock Company 42/44 the Company 25. Interregional Distribution Russia, 357506 The company is a member of - - Grid Company of the North Stavropol Krai, the same group of persons as Caucasus, Public Joint Pyatigorsk, ul. the Company Stock Company Podstantsionnaya, 18 26. Interregional Distribution Russia, 188300, The company is a member of - - Grid Company of the North- Leningrad Region, the same group of persons as West, Public Joint Stock Gatchina, ul. Sobornaya, the Company Company 31 27. Interregional Distribution Russia, 660021, The company is a member of - - Grid Company of Siberia, Krasnoyarsk, ul. the same group of persons as Public Joint Stock Company Bograda, 144 а the Company 28. Interregional Distribution Russia, 344002, Rostov- The company is a member of - - Grid Company of the South, on-Don, ul. Bolshaya the same group of persons as Public Joint Stock Company Sadovaya, 49 the Company

№ Full name of a corporate Corporate entity’s Reason to consider a party to Equity Equity entity or given name, registered address or be related interest of the interest of patronymic, surname of an individual’s place of related party the individual residence in the Company in Company’s the share share capital, capital of the % related party, % 29. Interregional Distribution Russia, 620026, The company is a member of 5.93 - Grid Company of the Urals, Yekaterinburg, ul. the same group of persons as Public Joint Stock Company Mamina-Sibiryaka, 140 the Company 30. Moscow United Power Grid Russia, 115114, The company is a member of - - Company, Public Joint Stock Moscow, 2 Paveletsky the same group of persons as Company proezd, 3, str. 2 the Company 31. Interregional Distribution Russia, 603950, Nizhny The company is a member of - - Grid Company of the Center Novgorod, ul. the same group of persons as and Volga Region, Public Rozhdestvenskaya, 33 the Company Joint Stock Company 32. Interregional Distribution Russia, 127018, The company is a member of - - Grid Company of the Moscow, ul. 2 the same group of persons as Center, Public Joint Stock Yamskaya, 4 the Company Company 33. Yantarenergo, Power Russia, 236000, The company is a member of - - Industry and Electrification Kaliningrad, ul. the same group of persons as Joint Stock Company Teatralnaya, 34 the Company 34. Tomsk Distribution Russia, 634041, Tomsk, The company is a member of - - Company, Public Joint Stock prospekt Kirova, 36 the same group of persons as Company the Company 35. Kuban Power Industry and Russia, 350033, The company is a member of - - Electrification Public Joint Krasnodar, ul. the same group of persons as Stock Company Stavropolskaya, 2 the Company 36. Federal Grid Company of Russia, 117630, The company is a member of - - the Unified Energy System, Moscow, ul. Akademika the same group of persons as Public Joint Stock Company Chelomeya, 5а the Company 37. Chechenenergo, Joint Stock Russia, 364051, Chechen The company is a member of - - Company Republic, Grozny, the same group of persons as Staropromyslovskoye the Company shosse, 6 38. Kabardino-Balkarian Public Russia, 360000, The company is a member of - - Power Industry and Kabardino-Balkar the same group of persons as Electrification Joint Stock Republic, Nalchik, ul. the Company Company Shchorsa, 6 39. Karachayevo- Russia, 369000, The company is a member of - - Cherkesskenergo Public Karachay-Cherkess the same group of persons as Joint Stock Company Republic, Cherkessk, ul. the Company Osmana Kasaeva, 3

№ Full name of a corporate Corporate entity’s Reason to consider a party to Equity Equity entity or given name, registered address or be related interest of the interest of patronymic, surname of an individual’s place of related party the individual residence in the Company in Company’s the share share capital, capital of the % related party, % 40. Kalmenergosbyt, Joint Stock Russia, 358000, The company is a member of - - Company Republic of Kalmykia, the same group of persons as Elista, ul. Lermontova, the Company 7а 41. Tyvaenergosbyt, Joint Stock Russia, 667010, Tyva The company is a member of - - Company Republic, Kyzyl, ul. the same group of persons as Zavodskaya, 2а the Company 42. Dagestan Power Sales Russia, 367020, The company is a member of - - Company, Public Joint Republic of Daghestan, the same group of persons as Stock Company Makhachkala, ul. the Company Dakhadaeva, 73 43. Research Engineering Russia,105062, Moscow, The company is a member of - - Center for Interregional ul. Chaplygina, 6 the same group of persons as Distribution Grid the Company Companies, Joint Stock Company 44. VNIPIenergoprom Russia,105094, Moscow, The company is a member of - - Association, Open Joint Semenovskaya nab., 2/1 the same group of persons as Stock Company the Company 45. Special Design Bureau of Russia, 115280, The company is a member of - - Heat Power Engineering Moscow, pr. 3 the same group of persons as Equipment VTI, Open Joint Avtozavodskoy, 4, kor.1 the Company Stock Company 46. Office of Fiber-Optic Russia, 115184, The company is a member of - - Communication Lines on Moscow, ul. Bolshaya the same group of persons as Overhead Power Lines of Tatarskaya, 35, str. 6 the Company Interregional Distribution Grid Companies, Joint Stock Company 47. Sevkavkazenergo, Power Russia, 362040, The company is a member of - - Industry and Electrification Republic of North the same group of persons as Public Joint Stock Company Ossetia - Alania, the Company Vladikavkaz, ul. Tamaeva, 19 48. Ingushenergo, Power Russia, 386100, The company is a member of - - Industry and Electrification Republic of Ingushetia, the same group of persons as Joint Stock Company Nazran, ul. Mutalieva, the Company 23 49. Northwest Energy Russia, 191186, St. The company is a member of - - Management Company, Petersburg, Marsovo the same group of persons as Public Joint Stock Company Pole, 1 the Company 50. Krzhizhanovsky Power Russia,119991, Moscow, The company is a member of - - Engineering Institute, Open Leninsky prospekt, 19 the same group of persons as Joint-Stock Company the Company

In accordance with the Corporate Code of Conduct and the requirements of regulatory documents of the Federal Financial Market Service of Russia, information about affiliates of Lenenergo PJSC is disclosed and published on the website www.lenenergo.ru .

In the reporting year, the Board of Directors approved the following related-party transactions:

Service contract for maintenance of the information acquisition and transmission system at power facilities between Lenenergo JSC and Northwest Energy Management Company JSC Date of approval of the Contract by the Board of Directors of Lenenergo JSC: 13.03.2015 (Minutes No. 28 dated 17.03.2015). Parties to the Contract: Lenenergo – Customer JSC;

Northwest Energy Management Company JSC – Contractor. Subject matter of the Contract: The Contractor shall, at the request of the Customer, provide services related to maintenance of the information acquisition and transmission system (IATS), automated process control system (APCS) and automated dispatch control system (ADCS) at power facilities, and the Customer shall pay for such services. Requirements to the services, their scope, delivery time and final result are set forth in the Specifications enclosed as an Annex to the Contract. Cost of services: The cost of services provided under the Contract is 52,100,000 (Fifty two million one hundred thousand) rubles 00 kopecks, including VAT (18%) in the amount of 7,947,457 (Seven million nine hundred forty-seven thousand four hundred fifty seven) rubles 64 kopecks. The cost is determined in accordance with the Cost Calculation (Annex to the Contract). Service delivery time: The services shall be provided and delivered by the Contractor on a monthly basis from 01.01.2015 to 31.12.2015 in accordance with the Specifications. Term of the Contract: The Contract shall become effective from the date of its signing and approval by the management bodies of both Parties as a related-party transaction and shall remain in effect until the Parties perform all of their respective obligations or until the Contract termination. The Contract shall apply to the relations between the Parties arisen from 01 January 2015.

Service contract for maintenance of auxiliary engineering systems between Lenenergo JSC and Northwest Energy Management Company JSC. Date of approval of the Contract by the Board of Directors of Lenenergo JSC: 13.03.2015 (Minutes No. 28 dated 17.03.2015). Parties to the Contract: Lenenergo JSC – Customer; Northwest Energy Management Company JSC – Contractor. Subject matter of the Contract: The Contractor shall, at the request of the Customer, provide services related to maintenance of auxiliary engineering systems of Lenenergo JSC located at: Saint Petersburg, Ploshchad Konstitutsii, 1, and the Customer shall pay for such services. Requirements to the services, their scope, delivery time and final result are set forth in the Specifications enclosed as Annex 1 to the Contract. Cost of services: The cost of services provided under the Contract is 2,400,120 (Two million four hundred thousand one hundred twenty) rubles 00 kopecks, including VAT (18%) in the amount of 366,120 (Three hundred sixty six thousand one hundred twenty) rubles 00 kopecks. The monthly cost of services provided under the Contract is 200,010 (Two hundred thousand ten) rubles 00 kopecks, including VAT (18%) in the amount of 30,510 (Thirty thousand five hundred ten) rubles 00 kopecks. Service delivery time: The services shall be provided and delivered by the Contractor on a monthly basis from 01.01.2015 to 31.12.2015 in accordance with the Specifications. Term of the Contract: The Contract shall become effective from the date of its signing and approval by the management bodies of both Parties as a related-party transaction and shall remain in effect until the Parties perform all of their respective obligations or until the Contract termination. The Contract shall apply to the relations between the Parties arisen from 01 January 2015.

Service contract for maintenance of shared information display systems between Lenenergo JSC and Northwest Energy Management Company JSC. Date of approval of the Contract by the Board of Directors of Lenenergo JSC: 13.03.2015 (Minutes No. 28 dated 17.03.2015). Parties to the Contract: Lenenergo JSC – Customer; Northwest Energy Management Company JSC – Contractor. Subject matter of the Contract:

The Contractor shall, at the request of the Customer, provide services related to maintenance of shared information display systems of Lenenergo JSC (Grid Control Center, Kingisepp Power Grid, Novaya Ladoga Power Grid, 1 High-Voltage District of Saint Petersburg High-Voltage Power Grid, Pravoberezhny district of Cable Grid, Central district of Cable Grid, and South-West district of Cable Grid) (hereinafter – "services"), and the Customer shall pay for such services. Requirements to the services, their scope, delivery time and final result are set forth in the Specifications enclosed as Annex 1 to the Contract. Cost of services: The cost of services provided under the Contract is 7,710,000 (Seven million seven hundred ten thousand) rubles 00 kopecks, including VAT (18%) in the amount of 1,176,101 (One million one hundred seventy six thousand one hundred one) rubles 69 kopecks. The cost is determined in accordance with the Cost Calculation (Annex 2 to the Contract). Service delivery time: The services shall be provided and delivered by the Contractor on a monthly basis from 01.01.2015 to 31.12.2015 in accordance with the Specifications. Term of the Contract: The Contract shall become effective from the date of its signing and approval by the management bodies of both Parties as a related-party transaction and shall remain in effect until the Parties perform all of their respective obligations or until the Contract termination. The Contract shall apply to the relations between the Parties arisen from 01 January 2015.

Service contract for maintenance of the dispatcher communications record equipment and multi-channel automatic warning system at power facilities between Lenenergo JSC and Northwest Energy Management Company JSC. Date of approval of the Contract by the Board of Directors of Lenenergo JSC: 13.03.2015 (Minutes No. 28 dated 17.03.2015). Parties to the Contract: Lenenergo JSC – Customer; Northwest Energy Management Company JSC – Contractor. Subject matter of the Contract: The Contractor shall, at the request of the Customer, provide services related to maintenance of the dispatcher communications record equipment and multi-channel automatic warning system at power facilities, and the Customer shall pay for such services. Requirements to the services, their scope, delivery time and final result are set forth in the Specifications enclosed as Annex 1 to the Contract. Cost of services: The cost of services provided under the Contract is 4,411,000 (Four million four hundred eleven thousand) rubles 00 kopecks, including VAT (18%) in the amount of 672,864 (Six hundred seventy two eight hundred sixty four) rubles 40 kopecks. The cost is determined in accordance with the Cost Calculation (Annex 2 to the Contract). Service delivery time: The services shall be provided and delivered by the Contractor on a monthly basis from 01.01.2015 to 31.12.2015 in accordance with the Specifications. Term of the Contract: The Contract shall become effective from the date of its signing and approval by the management bodies of both Parties as a related-party transaction and shall remain in effect until the Parties perform all of their respective obligations or until the Contract termination. The Contract shall apply to the relations between the Parties arisen from 01 January 2015.

Service contract for maintenance of grid infrastructure between Lenenergo JSC and Northwest Energy Management Company JSC. Date of approval of the Contract by the Board of Directors of Lenenergo JSC: 13.03.2015 (Minutes No. 28 dated 17.03.2015). Parties to the Contract: Lenenergo JSC – Customer; Northwest Energy Management Company JSC – Contractor. Subject matter of the Contract: The Contractor shall, at the request of the Customer, provide services related to maintenance of grid infrastructure of JSC Lenenergo (hereinafter – "services"), and the Customer shall pay for such services. Requirements to the services, their scope, delivery time and final result are set forth in the Specifications enclosed as Annex 1 to the Contract. Cost of services:

The cost of services provided under the Contract is 17,125,110 (Seventeen million one hundred twenty five thousand one hundred ten) rubles 00 kopecks, including VAT (18%) in the amount of 2,612,304 (Two million six hundred twelve thousand three hundred four) rubles 92 kopecks. The cost is determined in accordance with the Cost Calculation (Annex 2 to the Contract). Service delivery time: The services shall be provided and delivered by the Contractor on a monthly basis from 01.01.2015 to 31.12.2015 in accordance with the Specifications. Term of the Contract: The Contract shall become effective from the date of its signing and approval by the management bodies of both Parties as a related-party transaction and shall remain in effect until the Parties perform all of their respective obligations or until the Contract termination. The Contract shall apply to the relations between the Parties arisen from 01 January 2015.

Service contract for adaptation of 1C information systems between Lenenergo JSC and Northwest Energy Management Company JSC. Date of approval of the Contract by the Board of Directors of JSC Lenenergo: 13.03.2015 (Minutes No. 28 dated 17.03.2015). Parties to the Contract: Lenenergo JSC – Customer; Northwest Energy Management Company JSC – Contractor. Subject matter of the Contract: The Contractor shall, at the request of the Customer, provide services related to adaptation of 1C information systems, and the Customer shall pay for such services Requirements to the services, their scope, delivery time and final result are set forth in the Specifications enclosed as Annex 1 to the Contract. Cost of services: The cost of services provided under the Contract is 14,850,000 (Fourteen million eight hundred fifty thousand) rubles 00 kopecks, including VAT (18%) in the amount of 2,265,254 (Two million two hundred sixty five thousand two hundred fifty four) rubles 24 kopecks. The cost is determined in accordance with the Cost Calculation (Annex 2 to the Contract). Service delivery time: The services shall be provided and delivered by the Contractor on request from 01.02.2015 to 31.01.2016 in accordance with the Specifications. Term of the Contract: The Contract shall become effective from the date of its signing and approval by the management bodies of both Parties as a related-party transaction and shall remain in effect until the Parties perform all of their respective obligations or until the Contract termination. The Contract shall apply to the relations between the Parties arisen from 01 February 2015.

Service contract for maintenance of VHF radio communications equipment between Lenenergo JSC and Northwest Energy Management Company JSC Date of approval of the Contract by the Board of Directors of Lenenergo JSC: 13.03.2015 (Minutes No. 28 dated 17.03.2015). Parties to the Contract: Lenenergo JSC – Customer; Northwest Energy Management Company JSC – Contractor. Subject matter of the Contract: The Contractor shall, at the request of the Customer, provide services related to maintenance of VHF radio communications equipment, and the Customer shall pay for such services. Requirements to the services, their scope, delivery time and final result are set forth in the Specifications enclosed as Annex 1 to the Contract. Cost of services: The cost of services provided under the Contract is 2,964,000 (Two million nine hundred sixty four thousand) rubles 00 kopecks, including VAT (18%) in the amount of 452,135 (Four hundred fifty two one hundred thirty five) rubles 59 kopecks. The cost is determined in accordance with the Cost Calculation (Annex 2 to the Contract). Service delivery time: The services shall be provided and delivered by the Contractor on a monthly basis from 01.02.2015 to 31.01.2016 in accordance with the Specifications. Term of the Contract:

The Contract shall become effective from the date of its signing and approval by the management bodies of both Parties as a related-party transaction and shall remain in effect until the Parties perform all of their respective obligations or until the Contract termination. The Contract shall apply to the relations between the Parties arisen from 01 February 2015.

Service contract for provision of telephone communication services and dispatcher communications recording between Lenenergo JSC and Northwest Energy Management Company JSC. Date of approval of the Contract by the Board of Directors of Lenenergo JSC: 13.03.2015 (Minutes No. 28 dated 17.03.2015). Parties to the Contract: Lenenergo JSC – Customer; Northwest Energy Management Company JSC – Contractor. Subject matter of the Contract: The Contractor shall, at the request of the Customer, provide telephone communication services and dispatcher communications recording for the needs of JSC Lenenergo, and the Customer shall pay for such services. Requirements to the services, their scope, delivery time and final result are set forth in the Specifications enclosed as Annex 1 to the Contract. Cost of services: The cost of services provided under the Contract is 35,650,000 (Thirty five million six hundred fifty thousand) rubles 00 kopecks, including VAT (18%) in the amount of 5,438,135 (Five million four hundred thirty eight thousand one hundred thirty five) rubles 59 kopecks The cost is determined in accordance with the Cost Calculation (Annex 2 to the Contract). Service delivery time: The services shall be provided and delivered by the Contractor on a monthly basis from 01.02.2015 to 31.01.2018 in accordance with the Specifications. Term of the Contract: The Contract shall become effective from the date of its signing and approval by the management bodies of both Parties as a related-party transaction and shall remain in effect until the Parties perform all of their respective obligations or until the Contract termination. The Contract shall apply to the relations between the Parties arisen from 01 February 2015.

Service contract for maintenance of corporate applications and teamwork tools between Lenenergo JSC and Northwest Energy Management Company JSC. Date of approval of the Contract by the Board of Directors of JSC Lenenergo: 13.03.2015 (Minutes No. 28 dated 17.03.2015). Parties to the Contract: Lenenergo JSC – Customer; Northwest Energy Management Company JSC – Contractor. Subject matter of the Contract: The Contractor shall, at the request of the Customer, provide services related maintenance of corporate applications and teamwork tools, and the Customer shall pay for such services Requirements to the services, their scope, delivery time and final result are set forth in the Specifications enclosed as Annex 1 to the Contract. Cost of services: The cost of services provided under the Contract is 44,170,053 (Forty four million one hundred seventy thousand fifty three) rubles 00 kopecks, including VAT (18%) in the amount of 6,737,804 (Six million seven hundred thirty seven thousand eight hundred four) rubles 70 (seventy) kopecks. The cost is determined in accordance with the Cost Calculation (Annex 2 to the Contract). Service delivery time: The services shall be provided and delivered by the Contractor on a monthly basis from 01.02.2015 to 31.01.2016 in accordance with the Specifications. Term of the Contract: The Contract shall become effective from the date of its signing and approval by the management bodies of both Parties as a related-party transaction and shall remain in effect until the Parties perform all of their respective obligations or until the Contract termination. The Contract shall apply to the relations between the Parties arisen from 01 February 2015.

Service contract for support and adaptation of the ALPHA Unified Information System between Lenenergo JSC and Northwest Energy Management Company JSC.

Date of approval of the Contract by the Board of Directors of Lenenergo JSC: 13.03.2015 (Minutes No. 28 dated 17.03.2015). Parties to the Contract: Lenenergo JSC – Customer; Northwest Energy Management Company JSC – Contractor. Subject matter of the Contract: The Contractor shall, at the request of the Customer, provide services related to support and adaptation of the ALPHA Unified Information System for the needs of Lenenergo JSC, and the Customer shall pay for such services Requirements to the services, their scope, delivery time and final result are set forth in the Specifications enclosed as Annex 1 to the Contract. Cost of services: The cost of services provided under the Contract is 28,930,000 (Twenty eight million nine hundred thirty thousand) rubles 00 kopecks, including VAT (18%) in the amount of 4,413,050 (Four million four hundred thirteen thousand fifty) rubles eighty five kopecks. The cost is determined in accordance with the Cost Calculation (Annex 2 to the Contract). Service delivery time: The services shall be provided and delivered by the Contractor on a monthly basis from 01.02.2015 to 31.01.2016 in accordance with the Specifications. Term of the Contract: The Contract shall become effective from the date of its signing and approval by the management bodies of both Parties as a related-party transaction and shall remain in effect until the Parties perform all of their respective obligations or until the Contract termination. The Contract shall apply to the relations between the Parties arisen from 01 February 2015.

Service contract between Lenenergo JSC and Power Grid Optical Networks Engineering JSC. Date of approval of the Contract by the Board of Directors of JSC Lenenergo: 13.03.2015 (Minutes No. 28 dated 17.03.2015). Parties to the Contract: Lenenergo JSC – Customer; Power Grid Optical Networks Engineering JSC – Contractor. Subject matter of the Contract: The Contractor shall, at the request of the Customer, provide services related to standard maintenance of software ABB SCADA Network Manager (hereinafter – "services"), and the Customer shall pay for such services. Requirements to the services, their scope, delivery time and final result are set forth in the Specifications enclosed as an Annex to the Contract. Cost of services and procedure of payment: The cost of services provided under the Contract is 7,450,000 (Seven million four hundred fifty thousand) rubles, including VAT (18%) in the amount of 1,136,440 (One million one hundred thirty six thousand four hundred forty) rubles 68 kopecks. Service delivery procedure: The services under the Contract shall be provided and delivered by the Contractor on a monthly basis from 01.03.2015 to 29.02.2016 in accordance with the Specifications. Term of the Contract: The Contract shall become effective from the date of its signing by both Parties and shall remain in effect until the Parties perform all of their respective obligations or until the Contract termination. The Contract shall apply to the relations between the Parties arisen from 01 March 2015.

Supplementary agreement No. 3 to Agreement on technological interaction between SO UES JSC and the Company to ensure the operating reliability of the UES of Russia No. SDU-10/2010 dated 01.02.2011. Date of approval of the supplementary agreement by the Board of Directors of Lenenergo JSC: 13.03.2015 (Minutes No. 28 dated 17.03.2015).

Contract for provision of services related to arrangement and implementation of procurement procedures between Lenenergo JSC and Kurortenergo CJSC. Date of approval of the Contract by the Board of Directors of JSC Lenenergo: 05.05.2015 (Minutes No. 33 dated 07.05.2015). Parties to the Contract: Lenenergo JSC – Contractor;

Kurortenergo CJSC – Customer. Subject matter of the Contract: The Contractor shall, at the request of the Customer, provide services related to arrangement and implementation of procurement procedures to enable the Customer enter into contracts based on the results of procurement procedures (hereinafter – "Services"), and the Customer shall pay for such Services. The services shall be provided at the Customer's Requests submitted during the term of the Contract on the terms specified in the Procurement Specifications. Cost of services and procedure of payment: The cost of services for one calendar month is fixed and amounts to 7,805 (Seven thousand eight hundred five) rubles 70 kopecks, including VAT (18%) in the amount of 1,190 (One thousand one hundred ninety) rubles 70 kopecks. The number of Requests executed in the respective month shall not affect the cost of services. If there are no Requests in a calendar month, no payment shall be made in respect of such month. Payment for the Services shall be made on a quarterly basis. The maximum cost of all services provided under the Service Contract (for all Requests) shall not exceed 2% of the book value of assets of Lenenergo JSC at the last reporting date preceding the date of the Contract. Service delivery time: The Services shall be provided by the Contractor within the time frame established by the approved Request and the Procurement Specification, unless otherwise provided for by applicable law and internal documents that regulate procurement activities of the Parties. Term of the Contract: The Contract shall become effective from the date of its signing by both Parties and shall remain in effect until 31.12.2015. The Contract shall apply to the relations between the Parties arisen from 01.04.2015. If a procurement procedure is conducted (announced/posted) as of the date specified in this paragraph, the Contract shall remain in effect until the completion/cancellation of such procurement. The Contract shall be extended on the same terms for 1 (one) year unless either Party gives a written notice of Contract termination to the other Party 30 days prior to the expiration of the Contract.

Contract for provision of services related to arrangement and implementation of procurement procedures between Lenenergo JSC and Tsarskoye Selo Energy Company CJSC. Date of approval of the Contract by the Board of Directors of JSC Lenenergo: 05.05.2015 (Minutes No. 33 dated 07.05.2015). Parties to the Contract: Lenenergo JSC – Contractor; Tsarskoye Selo Energy Company CJSC – Customer. Subject matter of the Contract: The Contractor shall, at the request of the Customer, provide services related to arrangement and implementation of procurement procedures to enable the Customer enter into contracts based on the results of procurement procedures (hereinafter – "Services"), and the Customer shall pay for such Services. The services shall be provided at the Customer's Requests submitted during the term of the Contract on the terms specified in the Procurement Specifications. Cost of services and procedure of payment: The cost of services for one calendar month is fixed and amounts to 7,805 (Seven thousand eight hundred five) rubles 70 kopecks, including VAT (18%) in the amount of 1,190 (One thousand one hundred ninety) rubles 70 kopecks. The number of Requests executed in the respective month shall not affect the cost of services. If there are no Requests in a calendar month, no payment shall be made in respect of such month. Payment for the Services shall be made on a quarterly basis. The maximum cost of all services provided under the Service Contract (for all Requests) shall not exceed 2% of the book value of assets of JSC Lenenergo at the last reporting date preceding the date of the Contract. Service delivery time:

The Services shall be provided by the Contractor within the time frame established by the approved Request and the Procurement Specification, unless otherwise provided for by applicable law and internal documents that regulate procurement activities of the Parties. Term of the Contract: The Contract shall become effective from the date of its signing by both Parties and shall remain in effect until 31.12.2015. The Contract shall apply to the relations between the Parties arisen from 01.04.2015. If a procurement procedure is conducted (announced/posted) as of the date specified in this paragraph, the Contract shall remain in effect until the completion/cancellation of such procurement. The Contract shall be extended on the same terms for 1 (one) year unless either Party gives a written notice of Contract termination to the other Party 30 days prior to the expiration of the Contract.

Contract for provision of services related to arrangement and implementation of procurement procedures between JSC Lenenergo and Lenenergo Energy Service Company JSC. Date of approval of the Contract by the Board of Directors of JSC Lenenergo: 05.05.2015 (Minutes No. 33 dated 07.05.2015). Parties to the Contract: Lenenergo JSC – Contractor; Lenenergo Energy Service Company JSC– Customer. Subject matter of the Contract: The Contractor shall, at the request of the Customer, provide services related to arrangement and implementation of procurement procedures to enable the Customer enter into contracts based on the results of procurement procedures (hereinafter – "Services"), and the Customer shall pay for such Services. The services shall be provided at the Customer's Requests submitted during the term of the Contract on the terms specified in the Procurement Specifications. Cost of services and procedure of payment: The cost of services for one calendar month is fixed and amounts to 7,805 (Seven thousand eight hundred five) rubles 70 kopecks, including VAT (18%) in the amount of 1,190 (One thousand one hundred ninety) rubles 70 kopecks. The number of Requests executed in the respective month shall not affect the cost of services. If there are no Requests in a calendar month, no payment shall be made in respect of such month. Payment for the Services shall be made on a quarterly basis. The maximum cost of all services provided under the Service Contract (for all Requests) shall not exceed 2% of the book value of assets of JSC Lenenergo at the last reporting date preceding the date of the Contract. Service delivery time: The Services shall be provided by the Contractor within the time frame established by the approved Request and the Procurement Specification, unless otherwise provided for by applicable law and internal documents that regulate procurement activities of the Parties. Term of the Contract: The Contract shall become effective from the date of its signing by both Parties and shall remain in effect until 31.12.2015. The Contract shall apply to the relations between the Parties arisen from 01.04.2015. If a procurement procedure is conducted (announced/posted) as of the date specified in this paragraph, the Contract shall remain in effect until the completion/cancellation of such procurement. The Contract shall be extended on the same terms for 1 (one) year unless either Party gives a written notice of Contract termination to the other Party 30 days prior to the expiration of the Contract.

Service contract for maintenance of the conference call system between Lenenergo PJSC and Northwest Energy Management Company JSC. Date of approval of the Contract by the Board of Directors of Lenenergo PJSC: 25.09.2015 (Minutes No. 13 dated 30.09.2015). Parties to the Contract:

Lenenergo PJSC – Customer; Northwest Energy Management Company JSC – Contractor. Subject matter of the Contract: The Contractor shall, at the request of the Customer, provide services related to maintenance of the conference call system (hereinafter – "services"), and the Customer shall pay for such services. Requirements to the services, their scope, delivery time and final result are set forth in the Specifications enclosed as an Annex to the Contract. Cost of services: The cost of services provided under the Contract is 2,199,999 (Two million one hundred ninety nine thousand nine hundred ninety nine) rubles 72 kopecks, including VAT (18%) in the amount of 335,593 (Three hundred thirty five thousand five hundred ninety three) rubles 18 kopecks. The cost is determined in accordance with the Cost Calculation (Annex to the Contract). Service delivery time: The services shall be provided and delivered by the Contractor from 15.06.2015 to 14.06.2016 in accordance with the Specifications. Term of the Contract: The Contract shall become effective from the date of its signing by both Parties and shall remain in effect until the Parties perform all of their respective obligations or until the Contract termination. The Contract shall apply to the relations between the Parties arisen from 15 June 2015.

Service contract for maintenance of the power supply systems of the dispatching and technological control system (DTCS) at power facilities between Lenenergo PJSC and Northwest Energy Management Company JSC. Date of approval of the Contract by the Board of Directors of Lenenergo PJSC: 25.09.2015 (Minutes No. 13 dated 30.09.2015). Parties to the Contract: Lenenergo PJSC – Customer; Northwest Energy Management Company JSC – Contractor. Subject matter of the Contract: The Contractor shall, at the request of the Customer, provide services related to maintenance of the power supply systems of the dispatching and technological control system (DTCS) at power facilities ("services"), and the Customer shall pay for such services. Requirements to the services, their scope, delivery time and final result are set forth in the Specifications enclosed as an Annex to the Contract. Cost of services: The cost of services provided under the Contract is 8,573,756 (Eight million five hundred seventy three thousand seven hundred fifty six) rubles 24 kopecks, including VAT (18%) in the amount of 1,307,861 (One million three hundred seven thousand eight hundred sixty one) RUB 12 kopecks. The cost is determined in accordance with the Cost Calculation (Annex to the Contract). Service delivery time: The services shall be provided and delivered by the Contractor from 15.06.2015 to 14.06.2016 in accordance with the Specifications. Term of the Contract: The Contract shall become effective from the date of its signing by both Parties and shall remain in effect until the Parties perform all of their respective obligations or until the Contract termination. The Contract shall apply to the relations between the Parties arisen from 15 June 2015.

Service contract for maintenance of the automated dispatch control system (ADCS) between Lenenergo PJSC and Northwest Energy Management Company JSC. Date of approval of the Contract by the Board of Directors of Lenenergo PJSC: 25.09.2015 (Minutes No. 13 dated 30.09.2015). Parties to the Contract: Lenenergo PJSC – Customer; Northwest Energy Management Company JSC – Contractor. Subject matter of the Contract: The Contractor shall, at the request of the Customer, provide services related to maintenance of the automated dispatch control system in districts serviced by Cable Grid, a branch of Lenenergo PJSC ("services"), and the Customer shall pay for such services. Requirements to the services, their scope, delivery time and final result are set forth in the Specifications enclosed as an Annex to the Contract.

Cost of services: The cost of services provided under the Contract is 4,615,800 (Four million six hundred fifteen thousand eight hundred) rubles 00 kopecks, including VAT (18%) in the amount of 704,105 (Seven hundred four thousand one hundred five) rubles 08 kopecks. The cost is determined in accordance with the Cost Calculation (Annex to the Contract). Service delivery time: The services shall be provided and delivered by the Contractor from 01.07.2015 to 31.12.2015 in accordance with the Specifications. Term of the Contract: The Contract shall become effective from the date of its signing by both Parties and shall remain in effect until the Parties perform all of their respective obligations or until the Contract termination. The Contract shall apply to the relations between the Parties arisen from 01 July 2015.

Service contract for maintenance of the automated PC workstations, peripheral and office equipment between Lenenergo PJSC and Northwest Energy Management Company JSC. Date of approval of the Contract by the Board of Directors of Lenenergo PJSC: 25.09.2015 (Minutes No. 13 dated 30.09.2015). Parties to the Contract: Lenenergo PJSC – Customer; Northwest Energy Management Company JSC – Contractor. Subject matter of the Contract: The Contractor shall, at the request of the Customer, provide services related to maintenance of the automated PC workstations, peripheral and office equipment (hereinafter – "services"), and the Customer shall pay for such services. Requirements to the services, their scope, delivery time and final result are set forth in the Specifications enclosed as an Annex to the Contract. Cost of services: The cost of services provided under the Contract is 33,660,000 (Thirty three million six hundred sixty thousand) rubles 00 kopecks, including VAT (18%) in the amount of 5,134,576 (Five million one hundred thirty four thousand five hundred seventy six) rubles 27 kopecks. The cost is determined in accordance with the Cost Calculation (Annex to the Contract). Service delivery time: The services shall be provided and delivered by the Contractor from 01.07.2015 to 30.06.2016 in accordance with the Specifications. Term of the Contract: The Contract shall become effective from the date of its signing by both Parties and shall remain in effect until the Parties perform all of their respective obligations or until the Contract termination. The Contract shall apply to the relations between the Parties arisen from 01 July 2015.

Supplementary agreement No. 6 to immovable property lease agreement No. 09-1574 dated 31.03.2009 between Lenenergo PJSC and Tsarskoye Selo Energy Company CJSC. Date of approval of the supplementary agreement by the Board of Directors of Lenenergo PJSC: 25.09.2015 (Minutes No. 13 dated 30.09.2015).

Supplementary agreement No. 6 to immovable property lease agreement No. 09-1575 dated 31.03.2009 between Lenenergo PJSC and Tsarskoye Selo Energy Company CJSC. Date of approval of the supplementary agreement by the Board of Directors of Lenenergo PJSC: 25.09.2015 (Minutes No. 13 dated 30.09.2015).

Service contract for operational maintenance of electrical installations between Lenenergo PJSC and IDGC of North- West PJSC. Date of approval of the Contract by the Board of Directors of Lenenergo PJSC: 09.11.2015 (Minutes No. 21 dated 12.11.2015). Parties to the Contract: IDGC of North-West PJSC – Enterprise; Lenenergo PJSC – Customer. Subject matter of the Contract: The Customer provides and the Enterprise accepts for operational maintenance the following electrical installations owned by the Customer: 1. Cell OL-110 kV Milodezhskaya-1 at substation No. 31 110/35/6 (SS Rogavka) – 1 pc. 2. Overhead lines 110, 35 kV (double-chain) Milodezhskaya-1 and Tesovskaya-5 from pole 97(97) to substation No. 31 110/35/6 (SS Rogavka) – 22.8 km.

Requirements to the services, service delivery time are contained in the Specifications for operational maintenance of electrical installations annexed to the Contract. Cost of services: For operational maintenance of electrical installations, the Customer shall annually pay to the Enterprise 54,852 (fifty four thousand eight hundred fifty two) rubles 93 kopecks, including VAT 18% in the amount of 8,367.40 (eight thousand three hundred sixty seven) rubles 40 kopecks. Term of the Contract: The Contract shall become effective from the date of its signing by the Parties, shall apply to the relations of the Parties arisen from 01 January 2015, and shall remain in effect until 31 December 2015 (inclusive).

Supplementary agreement No. 9 to immovable property lease agreement No. 09-1289 dated 27.03.2009 between Lenenergo PJSC and Kurortenergo CJSC. Date of approval of the supplementary agreement by the Board of Directors of Lenenergo PJSC: 09.11.2015 (Minutes No. 21 dated 12.11.2015).

Supplementary agreement No. 6 to immovable property lease agreement No. 09-1290 dated 27.03.2009 between Lenenergo PJSC and Kurortenergo CJSC. Date of approval of the supplementary agreement by the Board of Directors of Lenenergo PJSC: 09.11.2015 (Minutes No. 21 dated 12.11.2015).

Framework agreement between Lenenergo PJSC and Lenenergo Energy Service Company JSC. Date of approval of the framework agreement by the Board of Directors of Lenenergo PJSC: 09.11.2015 (Minutes No. 21 dated 12.11.2015). Parties to the Agreement: Lenenergo PJSC – Customer; Lenenergo Energy Service Company JSC – Customer. Subject matter of the Agreement: 1. The Parties express their intention to prepare and perform, within a period of one year after the date of the Agreement, a number of material acts and transactions to meet the Customer’s needs for the implementation of a full range of design, survey works at construction and power grid facilities, including preparation of design estimates for external and internal power supply networks up to 35 kV ("Works"). 2. The Works under contracts entered into in accordance with clause 2.2.4 of this decision shall be performed in accordance with the time limits established in such contracts. The final deadlines set out in such contracts can be later than the expiration date of the period specified in clause 2.2.1 of this decision. 3. The cost of Works is limited by the maximum amount of 700,000,000.00 (Seven million) rubles 00 kopecks (including all statutory taxes and fees), for the period specified in clause 2.2.1 of this decision, for all sites where the Works will be performed under the Contracts entered into in accordance with clause 2.2.4 of this decision, regardless of the choice of the winner. The exact facility, scope, time, procedure of execution of works, cost of works, terms of payment shall be specified in the procurement documentation at the request of prices and contracts entered into in accordance with clause 2.2.4 of this decision. 4. If, by results of the request of prices, the Contractor's offer is recognized to be the best among the participants, the Customer will award contracts to the Contractor for: design work / design and survey works at the grid connection facilities to be performed in accordance with the investment program approved in accordance with applicable law, provided that the offer fully meets the Customer needs defined in the procurement documentation of the requests of prices. Other terms: The Agreement shall become effective from the date of its signing and shall remain in effect until the Parties perform all of their respective obligations or until the Agreement termination.

Contract between the Company and Research Engineering Center for Interregional Distribution Grid Companies JSC. Date of approval of the Contract by the Board of Directors of Lenenergo PJSC: 30.11.2015 (Minutes No. 23 dated 02.12.2015). Parties to the Contract: Customer – Lenenergo PJSC;

Contractor –Research Engineering Center for Interregional Distribution Grid Companies JSC. Subject matter of the Contract: The Customer requests and the Contractor undertakes, on its own behalf but at the expense of the Customer, to arrange for the procurement procedure for the supply of power transformers 35-220 kV for the needs of the Customer. Actions related to the implementation of procurement procedures under the Contract shall be carried out by the Contractor in accordance with instructions of the Customer. Price of the Contract: The cost of services provided by the Contractor for the arrangement and implementation of one procurement procedure is determined in accordance with Annex No. 6 to the Contract. Term of the Contract: The Contract shall become effective from the date of its signing by the Parties and shall remain in effect for 36 (Thirty six) months. If 30 (thirty) days prior to the expiration of the Contract neither Party expresses its intention not to renew the Contract or to enter into a new Contract on other essential terms, the Contract shall be automatically renewed for the same period. The Customer may withdraw from the Contract at any time by notifying the Contractor not later than 10 (Ten) days before the proposed date of termination of the Contract, without incurring penalties and having paid for the services actually rendered by the Contractor.

Contract between Lenenergo PJSC and Research Engineering Center for Interregional Distribution Grid Companies JSC. Date of approval of the Contract by the Board of Directors of Lenenergo PJSC: 30.11.2015 (Minutes No. 23 dated 02.12.2015). Parties to the Contract: Lenenergo PJSC – Customer; Research Engineering Center for Interregional Distribution Grid Companies JSC – Contractor. Subject matter of the Contract: The Contractor shall, at the request of the Customer, perform design and survey works for the Project "Reconstruction of substation 35/6 kV Gatchina (design and survey works)" to ensure approval of technical/design documentation (other documentation) delivered under the Contract by the relevant state bodies and local government bodies in accordance with the established procedure, including obtaining a positive state expert opinion in respect of the design documentation, and the Customer shall accept the Deliverables and pay for the Work in the manner and amount provided for in the Contract. The composition and scope of Works, technical, economic, and other requirements for Works and Deliverables are defined in the Specifications. Work performance time: Start date of Works under the Contract – 30 July 2015. Deadline for the completion of Works under the Contract – not later than 30 April 2016. The start date and deadline for each step (if the Works are performed in stages) are specified in the Plan schedule. The date of completion of Works under the Contract / stage shall be the date of signing of the Statement of Work Completion under the Contract / stage by the Parties. Price of the Contract: The Contract price is formed on the basis of the report on the results of the procurement procedure for contract award and is limited to the maximum of 8,920,796 rubles 08 kopecks (Eight million nine hundred twenty thousand seven hundred ninety six rubles and 08 kopecks), including VAT 18% in the amount of 1,360,799 rubles 40 kopecks (One million three hundred sixty thousand seven hundred ninety nine rubles and 40 kopecks). The final price of Works is formed on the basis of As-Is Estimates for the actually performed and accepted Works and may be lower than the Contract price. No supplementary agreement on Contract price reduction is required in this case. Term of the Contract: The Contract shall become effective from the date of its signing by the Parties and shall remain in effect until the Parties perform their respective obligations thereunder. The Contract shall apply to the relations between the Parties arisen from 30 July 2015.

Loan agreement between Lenenergo PJSC and Rosseti PJSC. Date of approval of the Agreement by the Board of Directors of Lenenergo PJSC: 30.11.2015 (Minutes No. 23 dated 02.12.2015).

Supplementary agreement to service contract No. 15-331 dated 30.01.2015 for adaptation of 1C information systems between Lenenergo JSC and Northwest Energy Management Company JSC Date of approval of the supplementary agreement by the Board of Directors of Lenenergo PJSC: 01.12.2015 (Minutes No. 24 dated 04.12.2015).

Contract for acquisition of additional shares of Lenenergo PJSC paid by federal loan bonds between Rosseti PJSC and Lenenergo PJSC, in terms of additional conditions (except for the terms of acquisition of additional shares of Lenenergo PJSC by Rosseti PJSC through the exercise of its preemptive right). Date of approval of the Contract by the Board of Directors of Lenenergo PJSC: 23.12.2015 (Minutes No. 28 dated 23.12.2015).

Contract for acquisition of additional shares of Lenenergo PJSC between Rosseti PJSC and Lenenergo PJSC, in terms of additional conditions (except for the terms of acquisition of additional shares of Lenenergo PJSC by Rosseti PJSC through the exercise of its preemptive right). Date of approval of the Contract by the Board of Directors of Lenenergo PJSC: 23.12.2015 (Minutes No. 28 dated 23.12.2015).

Settlement agreement on case No. A32-45648/2014 in the action of Lenenergo PJSC against Kubanenergo PJSC approved by the resolution of the Fifteenth Arbitration Appeal Court dated 04.09.2015. Date of approval of the settlement agreement by the Board of Directors of Lenenergo PJSC: 28.12.2015 (Minutes No. 30 dated 31.12.2015).

Contract for maintenance and upkeep of equipment between Lenenergo PJSC and FGC UES PJSC. Date of approval of the Contract by the Board of Directors of Lenenergo PJSC: 30.12.2015 (Minutes No. 31 dated 12.01.2016). Parties to the Contract: Contractor –FGC UES PJSC; Customer – Lenenergo PJSC. Subject matter of the Contract: The Contractor shall, using its own resources, carry out maintenance and upkeep services (hereinafter – "services") of power equipment (hereinafter – "Equipment") owned by the Customer in accordance with the Specifications (Annex 1 to the Contract), and the Customer shall accept and pay for the services in accordance with the terms of the Contract. The services shall be provided at the Contractor's site at: Leningrad Region, Tikhvin district, Tikhvin, ul. Tsentrolitovskaya, substation 330 kV No.261 Tikhvin-Liteyny. The services shall be provided in accordance with the Rules of Technical Operation of Power Stations and Grids of the Russian Federation approved by Order of the Ministry of Energy of Russia No. 229 dated 19.06.2003, Regulations for Occupational Safety in Operation of Electrical Installations approved by Order of the Ministry of Social Protection of the Russian Federation No. 328n dated 24.07.2013, Rules for the Organization of Maintenance and Repair of Equipment, Buildings and Structures of Electric Power Stations and Grids SO 34.04.181-2003, Standard for the Prevention and Liquidation of Process-Related Failures, standard operating procedure for power switchings, standard operating procedure for operational messages and records, industry documents of FGC UES PJSC. Cost of services and payment procedure under the Contract: The total cost of services provided by the Contractor is determined in accordance with local estimates (Annex 2 to the Contract), represents the ceiling price and amounts to 427,045 (Four hundred twenty seven thousand forty five) rubles 98 kopecks, including VAT 18% in the amount of 65,142 (Sixty five thousand one hundred forty two) rubles 61 kopecks. Term of the Contract: The contract shall become effective from the date of its signing by the Parties and shall remain in effect until the Parties perform all of their respective obligations thereunder. The Contract shall apply to the relations between the Parties arisen from 01.01.2015.

Contract for maintenance and upkeep of equipment between Lenenergo PJSC and FGC UES PJSC.

Date of approval of the Contract by the Board of Directors of Lenenergo PJSC: 30.12.2015 (Minutes No. 31 dated 12.01.2016). Parties to the Contract: Contractor –FGC UES PJSC; Customer – Lenenergo PJSC. Subject matter of the Contract: The Contractor shall, using its own resources, carry out maintenance and upkeep services (hereinafter – "services") of power equipment (hereinafter – "Equipment") owned by the Customer in accordance with the Specifications (Annex 1 to the Contract), and the Customer shall accept and pay for the services in accordance with the terms of the Contract. The services shall be provided at the Contractor's site at: Leningrad Region, Boksitigorsk district, Pikalevo urban settlement, Pikalevo, Leningradskoye shosse, 180, substation 220 kV No. 112 Pikalevskaya. The services shall be provided in accordance with the Rules of Technical Operation of Power Stations and Grids of the Russian Federation approved by Order of the Ministry of Energy of Russia No. 229 dated 19.06.2003, Regulations for Occupational Safety in Operation of Electrical Installations approved by Order of the Ministry of Social Protection of the Russian Federation No. 328n dated 24.07.2013, Rules for the Organization of Maintenance and Repair of Equipment, Buildings and Structures of Electric Power Stations and Grids SO 34.04.181-2003, Standard for the Prevention and Liquidation of Process-Related Failures, standard operating procedure for power switchings, standard operating procedure for operational messages and records, industry documents of FGC UES PJSC. Cost of services and payment procedure under the Contract: The total cost of services provided by the Contractor is determined in accordance with local estimates (Annex 2 to the Contract), represents the ceiling price and amounts to 499,943 (Four hundred ninety nine thousand nine hundred forty three) rubles 57 kopecks, including VAT 18% in the amount of 76,262 (Seventy six thousand two hundred sixty two) rubles 58 kopecks. Term of the Contract: The contract shall become effective from the date of its signing by the Parties and shall remain in effect until the Parties perform all of their respective obligations thereunder. The Contract shall apply to the relations between the Parties arisen from 01.01.2015.

Framework agreement between Lenenergo PJSC and Lenenergo Energy Service Company JSC. Date of approval of the framework agreement by the Board of Directors of Lenenergo PJSC: 30.12.2015 (Minutes No. 31 dated 12.01.2016). Parties to the Agreement: Lenenergo PJSC – Customer; Lenenergo Energy Service Company JSC – Customer. Subject matter of the Agreement: 1. The Parties express their intention to perform a number of legally significant actions and transactions to ensure provision of legal services / legal support for cases in courts of all levels in the Russian Federation during the period of 1,096 days (three years) after the date of signing of the Agreement, provided that the Contractor becomes the winner at the request for quotations organized by the Customer. 2. During the period specified in clause 2.1 of the Agreement, the Customer shall invite the Contractor, alongside with other persons with whom a similar Framework agreement was signed by the results of a two-stage open competition, to participate in the procurement held by the competitive method – the request for quotations. For each order for the provision of legal services / legal support or for several orders, separate request for quotation procedures shall be conducted and separate contracts shall be signed (hereinafter – the Contract). The time frame of such procedure shall be determined independently by the Customer. The initial (maximum) price of a lot (Contract), legal services / legal support delivery period under the Contract shall be determined by the Customer for each order(s). Specifications for the provision of legal services / legal support under the Contract shall be developed by the Customer for each order. 2.1. The total cost of all legal services / legal support provided for all Contracts under the Agreement, regardless of the choice of the winner, shall not exceed the maximum amount of 200,000,000 (Two hundred million) rubles 00 kopecks (including all statutory taxes and fees), for the period specified in clause 2.1 of the Agreement.

3. During the period specified in clause 2.1 of the Agreement, the Contractor shall participate in the requests for quotations held by the Customer (including: submit its offer in the manner and on the terms determined by the request for quotation documentation), if it is invited to participate in the respective request. 4. If the Contractor fails to participate in a request for quotations, the Customer shall be entitled to refrain from inviting the Contractor to participate in subsequent requests for quotations, and the Customer shall be exempted from its obligation specified in clause 2.2 of the Agreement. 5. The Customer shall be entitled to refrain from inviting the Contractor to participate in the requests for quotations, if it is found that the Contractor no longer meets the requirements for the Contractor set forth in the Documentation on two-stage open competition for the right to enter into Framework agreements, including gaining a negative experience. 6. The Parties agree that, if the offer of the Contractor is recognized to be the best among other offers by the results of a request for quotations, the Customer shall sign a Contract for the provision of legal services which are the subject of the relevant request for quotations. 7. The Parties agree that the Contract signed as a result of the request for quotations will be concluded in the form established by the Customer for the relevant request for quotations. Other terms: The Agreement shall become effective from the date of its signing and shall remain in effect until the Parties perform all of their respective obligations thereunder.

Conditions and deadlines for the implementation (completion) of settlement of accounts on transactions shall be established in accordance with concluded contracts, settlements shall be effected in cashless form. Payments to organizations shall be made in rubles.

Balances and transactions between the Company and its related parties at 31 December are presented below:

2015 2014 2013 Accounts receivable and advances issued 171,060 111,186 56,399 - parent company - 821 33 - subsidiaries 96,276 26,574 22,797 - other related parties 74,783 83,791 33,569 Accounts payable 11,949,005 5,463,986 4,198,491 - parent company 5,755 4,813 4,813 - subsidiaries 5,405,054 227,025 134,182 - other related parties 6,538,197 5,232,147 4,059,496 Advances received 59,021 39,385 47,856 - parent company - - - - subsidiaries 57,822 38,186 47,392 - other related parties 1,199 1,199 464

Types and amount of transactions between the Company and its related parties:

2015 2014 Sale of goods, work, services 3,375 46,915 - parent company 2,149 2,149 - subsidiaries 1,213 10,537 - other related parties 13 34,229 Purchase of goods, work, services 11,903,150 8,088,205 - parent company 101,459 91,356 - subsidiaries 5,255,872 1,404,885 - other related parties 6,545,818 6,591,964 Lease of property from related parties 611 1,208 - parent company - - - subsidiaries - - - other related parties 611 1,208 Lease of property to related parties 133,081 141,201 - parent company - - - subsidiaries 133,081 140,578 - other related parties - 623

2015 2014 Financial operations - Proceeds from issue 32,000,000 173,832 - parent company 32,000,000 173,832 - subsidiaries - - - other related parties - - Financial operations - Acquisition of equity interest in the Company 33,280,256 3,500 - parent company 33,280,256 - - subsidiaries - - - other related parties - 3,500

In 2015, remunerations paid in accordance with the Articles of Association of the Company amounted to RUB 3,527 thousand: – to the members of the Board of Directors – RUB 2,066 thousand; – to the Internal Audit Commission – RUB 1,461 thousand.

Payments to key management personnel amounted to RUB 75,987 thousand.

22. CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Existing and potential claims against the Company

At 31 December 2015, the Company is involved in legal proceedings arising in the course of its financial and business operations. Legal proceedings with a high risk of loss are disclosed in Section 14 "Estimated liabilities". The Company reported all contingent liabilities with a high risk of losing in the provision.

Taxation

Russian tax, currency and customs legislation is subject to varying interpretations and frequent changes. The Company management's interpretation of such legislation applied to the Company’s transactions and operations, may be challenged by relevant regional and federal authorities. Recent developments in the Russian Federation indicate that tax bodies may take a more assertive position in their interpretation of the legislation and tax assessments. As a consequence, tax bodies may challenge transactions and accounting methods which they did not challenge before. As a result, significant additional taxes, penalties and fines may be imposed. It doesn't seem possible to determine the amounts of possible but not presented claims or assess the probability of an adverse outcome. Tax audits may cover three calendar years of business operations immediately preceding the year of audit. Under certain conditions, earlier periods may also be subject to tax audit.

In the Company management's opinion, at 31 December 2015, the relevant provisions of laws were interpreted correctly, and the likelihood of maintaining the current Company’s position in connection with tax, currency and customs legislation is high.

On 1 January 2012, transfer pricing legislation was enacted whereby the principles for determining market prices were changed, the lists of persons who can be recognized as interdependent and the lists of controlled transactions were expanded. Since law enforcement practice under the new rules has not yet developed, and some provisions of the new law contain contradictions, they cannot be called ‘well-defined’. To overcome the significant impact of risks associated with transfer pricing on the accounting (financial) statements, the Company has developed pricing methods for all types of controlled transactions and standards for preparing reporting documentation.

Disagreements contested out of court

At 31 December 2015, the Company has disagreements contested out of court with the following companies: – SPb ES JSC to the amount of RUB 1,121,222 thousand excluding VAT.

The likelihood of a favourable outcome for the Company in the settlement of these disagreements has been assessed as average.

Security provided

At 31 December 2015, security issued by the Company to third parties for its own liabilities and security received are presented in Annex 5.8.

23. EVENTS AFTER 31 DECEMBER 2015

No decisions were made by the Company on payment of interim dividends for 2015. The decision on distribution of profits for 2015, including payment of dividends for 2015, will be made at the Annual General Meeting of Shareholders of the Company.

There were no significant events, other than those disclosed in sections of these explanatory notes on accounting areas, after the date of signing the accounting statements for 2015 which could have a material effect on the statements of Lenenergo PJSC.

24. GOVERNMENT GRANTS

The Company’s use of budget funds is presented in Table 5.9 “Government grants” of the Notes to the Balance Sheet of the Company.

During 2015, the Company received budgetary subsidies to the amount of RUB 654 thousand (2014: RUB 59,802 thousand) to: – implement the contract to perform mobilization training; – finance preventive measures to reduce occupational injuries and diseases

At 31 December 2015, the Company received and disbursed budget funds in full.

25. SEGMENTS

The Company operates in St. Petersburg and the Leningrad Region. For these regions, tariffs for services associated with core activities – power transmission services and services on grid connection services – are established separately by regional regulators. In order to provide regional regulators with necessary data for tariff calculations, the Company maintains analytical records of its business transactions separately for each of the above two geographic entities.

In compliance with Resolution of the Government of the Russian Federation No. 1178 dated 29.12.2011, the Company performs separate accounting for constituent entities of the Russian Federation within its management accounting for the purposes of state regulation of prices (tariffs).

Separate accounting within management accounting is performed for the following items: income, expenses, income tax, net profit, borrowings, using primary accounting data breakdown, technical information, statistical data, and business plan of Lenenergo PJSC.

Table 5.13 of the Notes to the Balance Sheet of the Company provides information with distribution of the results of the Company operations for 2015 in Saint Petersburg and the Leningrad Region.

The table below presents information on income and profit for the operating segments of the Company calculated on the basis of management accounting data (RUB thousand):

Saint Total for the For 2015 Leningrad Region Petersburg reporting segments Revenue from sales to buyers (customers) of the Company 26,254,765 17,471,896 43,726,661 Material costs 16,054,571 11,098,519 27,153,090 Labour costs and social security contributions 2,132,507 2,306,129 4,438,636 Depreciation of fixed assets and intangible assets 6,038,573 3,913,373 9,951,946 other income 19,014,246 17,731,162 36,745,408

other expenses 22,925,183 19,758,821 63,616,701 Interest receivable 512,425 492,332 1,004,758 Dividends receivable 387 372 759 Interest payable 2,182,262 1,596,183 3,778,445 Financial result (profit or loss) of the segment (3,551,272) (2,977,262) (6,528,534) Corporate income tax (332,925) (279,113) (612,038) Net profit/(loss) of the segment (3,218,347) (2,698,149) (5,916,496)

Since in each geographic operating segment the Company carries out similar economic activities, provides services that are similar in nature and operates in the same legal environment in the territory of one country, the above geographical segments are defined as a single segment for purposes of these financial (accounting) statements. The Company believes that consolidation of segments provides the users of the accounting (financial) statements with the most relevant information about specific aspects of the industry, economic structure and financial performance of the Company.

Acting Director General (signed) R. N. Berdnikov

Chief Accountant (signed) G. V. Kuznetsova

March 10, 2016

Lenenergo PJSC

Notes to the Balance Sheet and Profit and Loss Statement

2.1. Cost of sold goods, work, services by cost elements

Item For 2015 For 2014 Description Code 1 2 3 4 Production costs 6510 44,060,478 39,256,552 including material costs 6511 641,506 607,668 labour costs 6512 3,436,079 3,383,642 social security contributions 6513 1,002,557 894,540 depreciation 6514 9,951,946 8,972,034 other expenses 6515 29,028,390 25,398,668

For reference: Change in inventories and provisions (increase [+], decrease [-]): 6520 including work in progress 6521 finished products 6522 purchased goods 6523 shipped goods 6524 auxiliary raw materials 6525

Total cost of sales (goods, work, services) 6500 44,060,478 39,256,552 including: cost of sales 6530 44,060,478 39,256,552 management services to third parties 6540

Selling and distribution expenses 6550 - - including material costs 6551 labour costs 6552 social security contributions 6553 depreciation 6554 other expenses 6555

Management expenses 6560 - - including material costs 6561 labour costs 6562 social security contributions 6563 depreciation 6564 other expenses 6565

2.2. Earnings per share, diluted earnings per share

Item Description Code For 2015 For 2014 1 2 3 4 Net profit (uncovered loss) of the reporting period 6610 (5,916,496) (7,967,844) Dividends on preference shares3 6611 Base profit (loss) of the reporting period 6612 (5,916,496) (7,967,844) Weighted average number of outstanding ordinary shares during the reporting year. 6613 1,658,815 1,178,707 Basic earnings (loss) per share 6620 (3.5667) (6.7598) Weighted average market value of one ordinary share 6621 2.58856 2.48163 Possible increase in profit and weighted average number of outstanding shares 6630 X X As a result of conversion of preference shares into ordinary shares 6631 X X possible increase in profit 66311 additional number of shares 66312 As a result of conversion of bonds into ordinary shares 6632 X X possible increase in profit 66321 additional number of shares 66322 As a result of performance share sale and purchase contracts at the price below market 6633 X X contract purchase price 66331 possible increase in profit 66332 additional number of shares 66333 Diluted earnings per share 6640 0.0000 0.0000 adjusted base profit 6641 adjusted weighted average number of outstanding shares 6642

2.3. Profit taxation

Item Code For 2015 For 2014 1 2 3 4

Profit/(loss) before tax 6710 (6,528,534) (8,793,363) including taxable at the rate: 20% 67101 (6,529,293) (8,793,922) other rates 67102 non-taxable 67103 759 559 Permanent differences 6711 4,790,713 5,089,024 For reference: permanent differences offsetting temporary differences 67111 Change in deductible temporary differences 6712 3,091,418 11,814,835 Change in taxable temporary differences 6713 (1,353,597) (6,183,625) Tax base 6714 - 1,926,871 Income tax expenses (gain) 6720 (1,044,053) (1,559,693) Income tax contingent expenses (gain) 6721 (1,305,707) (1,758,673) Permanent tax liability (asset) 6722 958,143 1,017,805 For reference: change in deferred taxes charged to profits and losses 67221 Deferred tax expenses (gain) 6723 347,564 1,126,242 including:

change in deferred tax asset 67231 618,284 2,362,967 change in deferred tax liability 67232 (270,720) (1,236,725) Current income tax 6724 (3,715) (481,718) Adjustment of income tax amounts for past tax periods 6725 261,654 198,980 Other tax payments and penalties from profit 6730 6,535 (17,985) including under significant items 6731 Profit (loss) from ordinary activities 6740 (5,916,496) (7,967,844)

5.1. Intangible assets

5.1.1. Availability and flow of intangible assets

Change for the period Item At the beginning of the year At the end of the period Revaluation Accrued Initial/ Accumulat Initial/ Accumulat Impairmen Initial/ Accumulat Initial/ Accumulat Received depreciatio Impairm Description Code Period current ed Impairmen Residual current ed Impairmen t loss current ed current ed Residual n ent market depreciatio t losses value market depreciatio t losses market depreciatio market depreciatio value losses value n value n value n value n 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 5100 for 2015 (1) 395,896 (264,940) - 130,956 46,733 - - - (52,594) - - - 442,629 (317,534) - 125,095 Intangible assets - total 5110 for 2014 (2) 293,548 (221,384) - 72,164 102,501 (153) - - (43,556) - - - 395,896 (264,940) - 130,956 Intellectual property items 5101 for 2015 (1) 163,699 (36,722) - 126,977 46,733 - - - (40,242) - - - 210,432 (76,964) - 133,468 (exclusive rights to intellectual property items) 5111 for 2014 (2) 61,198 (24,480) - 36,718 102,501 - - - (12,242) - - - 163,699 (36,722) - 126,977 including: rights of patent holder to 51011 for 2015 (1) ------inventions, industrial prototype, utility model 51111 for 2014 (2) - - - - - computer software, 51012 for 2015 (1) 163,679 (36,720) - 126,959 46,733 (40,238) 210412 (76,958) - 133,454 databases 51112 for 2014 (2) 61,198 (24,480) 36,718 102,481 (12,240) 163,679 (36,720) - 126,959 rights of right holder to 51013 for 2015 (1) ------integrated circuit layouts 51113 for 2014 (2) - - - - - rights of owner to trademark, 51014 for 2015 (1) 20 (2) - 18 (4) 20 (6) - 14 service mark, appellation of origin 51114 for 2014 (2) - 20 (2) 20 (2) - 18 5102 for 2015 (1) ------Goodwill of the Company 5112 for 2014 (2) - - - - - 5103 for 2015 (1) 232,197 (228,218) - 3,979 (12,352) 232,197 (240,570) - (8,373) Other 5113 for 2014 (2) 232,350 (196,904) 35,446 (153) (31,314) 232,197 (228,218) - 3,979

5.2. Results of research, development, and engineering work, and intangible assets

5.2.1. Availability and flow of R&D results

Description Code Period At the beginning of the year Change for the period At the end of the period initial cost portion of cost received retired portion of cost initial cost portion of cost written off as initial cost portion of cost written off as written off as expenses written off as expenses for the expenses expenses period 1 2 3 4 5 6 7 8 9 10 11 5140 for 2015 (1) 34,165 (19,866) - - - (9,052) 34,165 (28,918) R&D - total 5150 for 2014 (2) 92,131 (8,730) - (57,966) - (11,136) 34,165 (19,866) including: - - Expenses on R&D 5141 for 2015 (1) 34,165 (19,866) (9,052) 34,165 (28,918) delivering results that are used for production 5151 for 2014 (2) 92,131 (8,730) (57,966) (11,136) 34,165 (19,866) needs Patent-capable results of 5142 for 2015 (1) - - - - completed R&D 5152 for 2014 (2) - - Expenses on R&D 5143 for 2015 (1) - - - - performed in-house 5153 for 2014 (2) - - Expenses on R&D 5144 for 2015 (1) - - - - performed by third parties 5154 for 2014 (2) - -

5.2.2. R&D in progress and non-formalized and uncompleted transactions on acquisition of intangible assets

Description Code Period At the beginning of Change for the period At the end of the the year costs for the period written off as costs without recognized as period positive result intangible assets or R&D 1 2 3 4 5 6 7 8 5160 for 2015 (1) - - - - - Costs of R&D in progress - total 5170 for 2014 (2) - - - - - including: 5161 for 2015 (1) - - Research work 5171 for 2014 (2) - 5162 for 2015 (1) - - Development work 5172 for 2014 (2) - 5163 for 2015 (1) - - Engineering work 5173 for 2014 (2) - 5164 for 2015 (1) - - Other 5174 for 2014 (2) - Uncompleted transactions on 5180 for 2015 (1) 83,407 21,940 - (46,733) 58,614 acquisition of intangible assets - 5190 for 2014 (2) 33,137 94,805 - (44,535) 83,407 total including: from a patent holder in respect of 5181 for 2015 (1) - - inventions, industrial prototype, utility model 5191 for 2014 (2) - from a right holder in respect of 5182 for 2015 (1) 41,264 21,940 (46,733) 16,471 computer software, databases 5192 for 2014 (2) 27,205 58,574 (44,515) 41,264 from a right holder in respect of 5183 for 2015 (1) - - integrated circuit layouts 5193 for 2014 (2) - from an owner in respect of 5184 for 2015 (1) - - trademark, service mark, appellation of origin 5194 for 2014 (2) 20 (20) - 5185 for 2015 (1) 42,143 42,143 Other 5195 for 2014 (2) 5,932 36,211 42,143

5.3. Fixed assets

5.3.1. Availability and flow of fixed assets

At the beginning of the year Change for the period At the end of the period retired revaluation accumulated Accumulat Description Code Period accumulated residual depreciation accrued accumulated residual initial cost received Accumulated ed initial cost depreciation value on received initial cost depreciation initial cost depreciation value depreciation depreciatio items n 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Fixed assets (excluding 5200 for 2015 275,294,276 (147,662,528) 127,631,748 3,665,952 - (1,125,479) 1,021,390 (10,009,964) - - 277,834,749 (156,651,102) 121,183,647 income-bearing investments in tangible 5210 for 2014 251,679,059 (139,253,737) 112,425,322 24,341,888 - (726,671) 625,527 (9,034,318) - - 275,294,276 (147,662,528) 127,631,748 assets) - total including: Depreciable fixed assets 5201 for 2015 275,186,860 (147,662,528) 127,524,332 3,664,149 - (1,125,479) 1,021,390 (10,009,964) - - 277,725,530 (156,651,102) 121,074,428 - total: 5211 for 2014 251,599,594 (139,253,737) 112,345,857 24,313,937 - (726,671) 625,527 (9,034,318) - - 275,186,860 (147,662,528) 127,524,332 including: 52011 for 2015 21,869,535 (11,654,264) 10,215,271 49,038 (130,605) 115,293 (390,885) 21,787,968 (11,929,856) 9,858,112 production buildings 52111 for 2014 20,827,395 (11,373,751) 9,453,644 1,140,195 (98,055) 77,662 (358,175) 21,869,535 (11,654,264) 10215271 structures other than 52012 for 2015 4,478,158 (2,132,394) 2,345,764 77,720 (56,202) 49,627 (166,721) 4,499,676 (2,249,488) 2,250,188 power lines 52112 for 2014 4,059,601 (2,007,282) 2,052,319 433,157 (14,600) 11,967 (137,079) 4,478,158 (2,132,394) 2,345,764 power lines and devices 52013 for 2015 180,567,580 (105,992,506) 74,575,074 1,458,101 (628,245) 596,936 (4,896,949) 181,397,436 (110,292,519) 71,104,917 for them 52113 for 2014 169,151,843 (101,475,687) 67,676,156 11,578,374 (162,637) 162,052 (4,678,871) 180,567,580 (105,992,506) 74,575,074 machinery and 52014 for 2015 68,132,965 (27,806,827) 40,326,138 2,072,552 (307,951) 257,210 (4,541,527) 69,897,566 (32,091,144) 37,806,422 equipment for electric power generation, substations, equipment 52114 for 2014 57,468,286 (24,328,853) 33,139,433 11,113,618 (448,939) 371,407 (3,849,381) 68,132,965 (27,806,827) 40,326,138 for electric power transformation production and other 52015 for 2015 138,110 (76,371) 61,739 6,738 (2,476) 2,324 (13,825) 142,372 (87,872) 54,500 equipment 52115 for 2014 91,956 (68,056) 23,900 48,593 (2,439) 2,439 (10,754) 138,110 (76,371) 61,739 52016 for 2015 512 (166) 346 (57) 512 (223) 289 other 52116 for 2014 513 (108) 405 (1) (58) 512 (166) 346

At the beginning of the year Change for the period At the end of the period accumulated retired revaluation Description Code Period accumulated residual accrued accumulated initial cost received depreciation on accumulated accumulated initial cost residual value depreciation value initial cost depreciation initial cost depreciation received items depreciation depreciation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Items with unlimited useful 5202 for 2015 107416 - 107416 1,803 ------109,219 - 109,219 life, non-depreciable - total 5212 for 2014 79,465 - 79,465 27,951 ------107,416 - 107,416 including: 52021 for 2015 107,416 - 107,416 1,803 109,219 - 109,219 land plots 52121 for 2014 79,465 79,465 27,951 107,416 - 107,416 52022 for 2015 ------environmental facilities 52122 for 2014 - - - - Capital investments for 5203 for 2015 ------land reclamation 5213 for 2014 - - - - Recognized in income- 5220 for 2015 ------bearing investments in 5230 for 2014 ------tangible assets - total including: - 5221 for 2015 ------property for leasing 5231 for 2014 - - - - property on tenancy 5222 for 2015 - - - - - contract basis 5232 for 2014 - - - -

5.3.2. Useful lives and depreciation methods

Established useful life Description Code Depreciation methods (months) 1 2 3 4 Production buildings 7001 536 straight-line Structures other than power lines 7002 343 straight-line Power lines and devices for them 7003 370 straight-line Machinery and equipment for electric power generation, substations, 7004 197 straight-line equipment for electric power transformation Production and other equipment 7005 71 straight-line Other 7006 36 straight-line

5.3.3. Change in the cost of fixed assets as a result of completion, additional equipment, reconstruction and partial liquidation

Description Code For 2015 For 2014 1 2 3 4 Increase in the cost of fixed assets as a result of completion, additional equipment, 5260 reconstruction - total 673,191 4,632,275 including: production buildings 5261 8,107 354,056 structures other than power lines 5262 41,383 51,202 power lines and devices for them 5263 409,351 2,954,226 machinery and equipment for electric power generation, substations, 5264 equipment for electric power transformation 214,350 1,272,791 production and other equipment 5265 other 5266 Decrease in the cost of fixed assets as a 5270 result of partial liquidation - total: 57,739 42,213 including: production buildings 5271 structures other than power lines 5272 746 power lines and devices for them 5273 17,814 41,334 machinery and equipment for electric power generation, substations, 5274 equipment for electric power transformation 39,179 879 production and other equipment 5275 other 5276

5.3.4. Other use of fixed assets

Description Code At 31 December 2015 At 31 December 2014 At 31 December 2013 1 2 3 4 5 Leased out fixed assets on the balance sheet 5280 2,491,662 2,433,874 2,409,201 Leased out fixed assets off the balance sheet 5281 Leased in fixed assets on the balance sheet 5282 Leased in fixed assets off the balance sheet 5283 936,011 1,503,677 1,489,605 Immovable property items accepted into operation and actually used, in the process of state registration 5284 1,795,001 2,186,253 1,694,105 Fixed assets transferred to conservation 5285 39,441 39,441 189,560 Other use of fixed assets (pledge, etc.) 5286

5.3.5. Capital investments in progress

Change for the period At the beginning At the end of the Description Code Period recognized as fixed assets or of the year costs for the period written off period increased cost 1 2 3 4 5 6 7 8 Construction in progress and 5240 for 2015 (1) 10,558,780 6,878,027 (485,661) (3,615,894) 13,335,252 uncompleted transactions on acquisition, 5250 for 2014 (2) 11,753,400 23,393,036 (322,103) (24,265,553) 10,558,780 upgrade, etc. of fixed assets - total including: 5241 for 2015 (1) 10,558,780 6,878,027 (485,661) (3,615,894) 13,335,252 Production use 5251 for 2014 (2) 11,753,400 23,393,036 (322,103) (24,265,553) 10,558,780 52411 for 2015 (1) 10,114,353 4,635,055 (484,720) (1,448,889) 12,815,799 construction in progress 52511 for 2014 (2) 11,184,938 20,836,902 (41,797) (21,865,690) 10,114,353 52412 for 2015 (1) 227,301 344,610 (139) (469,788) 101,984 acquisition of fixed assets 52512 for 2014 (2) 71,473 1,269,055 (438) (1,112,789) 227,301 52413 for 2015 (1) 178,129 201,149 (802) 378,476 equipment to be installed 52513 for 2014 (2) 457,997 (279,868) 178,129 52414 for 2015 (1) 38,997 1,697,213 (1,697,217) 38,993 other 52514 for 2014 (2) 38,992 1,287,079 (1,287,074) 38,997 5242 for 2015 (1) - - - - - Non-production use 5252 for 2014 (2) - - - - - 52421 for 2015 (1) - - construction in progress 52521 for 2014 (2) - 52422 for 2015 (1) - - acquisition of fixed assets 52522 for 2014 (2) - 52423 for 2015 (1) equipment to be installed 52523 for 2014 (2) 52424 for 2015 (1) - - other 52524 for 2014 (2) -

5.3.6. Advances issued for capital construction and acquisition of fixed assets

Description Code Period At the beginning of the Change for the period At the end of the period year recognized amount of received retired recognized amount of under the as a result of other accrual of the repayment written-off written-off to recovery of under the provision contract provision for business accruals provision against financial the provision contract for doubtful terms doubtful transactions previously result terms debts debts (amount of accrued debt under provision transaction) 1 2 3 4 6 7 13 Advances issued for 5291 for 2015 (1) 1,104,923 (96,812) 20,481 - (637,363) (356,257) (5,467) (10) - 763,670 (728,708) capital construction 5292 for 2014 (2) 565,031 (107,156) 2,837,140 - (45,853) (2,293,980) (3,184) (84) 53,013 1,104,923 (96,812) including: 52911 for 2015 (1) 1,104,216 (96,812) 13,113 (637,363) (348,250) (5,467) (10) 763,602 (728,708) capital construction 52921 for 2014 (2) 564,549 (107,156) 2,807,887 (45,853) (2,264,958) (3,184) (78) 53,013 1,104,216 (96,812) acquisition of fixed 52912 for 2015 (1) 707 - 7,368 (8,007) 68 - assets 52922 for 2014 (2) 482 29,253 (29,022) (6) 707 - 52913 for 2015 (1) - - - - other 52923 for 2014 (2) - -

5.4. Financial investments

5.4.1. Availability and flow of financial investments

At the beginning of the year Change for the period At the end of the period retired (repaid) interest accrued (including current market Description Code Period accumulated accumulated initial cost received accumulated bringing initial cost to value (impairment initial cost adjustment initial cost adjustment adjustment nominal) losses) 1 2 3 4 5 6 7 8 9 10 11 12 Long-term financial 5301 for 2015 (1) 2,654,326 (49,318) 57,857,522 (34,983,973) - 1,280,256 (8,680,856) 26,808,131 (8,730,174) investments - total 5311 for 2014 (2) 947,113 (49,318) 1,707,217 (4) - - - 2,654,326 (49,318) Contributions to share (joint- 53021 for 2015 (1) 950,609 (49,318) 15,237,522 - - 49,318 16,188,131 stock) capitals of other 53121 for 2014 (2) 947,113 (49,318) 3,500 (4) - - 950,609 (49,318) companies - total including 530211 for 2015 (1) 897,791 - 15,237,522 16,135,313 - subsidiaries 531211 for 2014 (2) 897,791 897,791 - 530212 for 2015 (1) . - - - affiliates 531212 for 2014 (2) 4 (4) - - 530213 for 2015 (1) 52,818 (49,318) 49318 52,818 - other 531213 for 2014 (2) 49,318 (49,318) 3,500 52,818 (49,318) Government and municipal 53022 for 2015 (1) - - 32,000,000 (33,280,256) 1,280,256 - - securities 53122 for 2014 (2) - - Securities of other organizations - 53023 for 2015 (1) - . - - total 53123 for 2014 (2) - - including debt securities (bonds, 530231 for 2015 (1) - - - - promissory notes) 531231 for 2014 (2) - - 53024 for 2015 (1) - - - - Loans granted 53124 for 2014 (2) - - 53025 for 2015 (1) 1,703,717 - 10,620,000 (1,703,717) (8,730,174) 10,620,000 (8,730,174) Deposits 53125 for 2014 (2) 1,703,717 1,703,717 53026 for 2015 (1) . - - - Other 53126 for 2014 (2) - - Long-term financial 5302 for 2015 (1) ------investments with current 5312 for 2014 (2) ------market value - total Contributions to share (joint- 53031 for 2015 (1) ------stock) capitals of other 53131 for 2014 (2) . ------companies - total including 530311 for 2015 (1) . - - subsidiaries 531311 for 2014 (2) - - 530312 for 2015 (1) _ . - - affiliates 531312 for 2014 (2) - - 530313 for 2015 (1) . - - other 531313 for 2014 (2) - - Government and municipal 53032 for 2015 (1) - - securities 53132 for 2014 (2) - - Securities of other organizations - 53033 for 2015 (1) - - - total 53133 for 2014 (2) - - including debt securities (bonds, 530331 for 2015 (1) . . - - promissory notes) 531331 for 2014 (2) - - 53034 for 2015 (1) . - - - Other 53134 for 2014 (2) - - Long-term financial 5303 for 2015 (1) 2,654,326 (49,318) 57,857,522 (34,983,973) 1,280,256 (8,680,856) 26,808,131 (8,730,174) investments for which no current market value is 5313 for 2014 (2) 947,113 (49,318) 1,707,217 (4) 2,654,326 (49,318) determined - total

5.4. Financial investments

5.4.1. Availability and flow of financial investments (continued)

Description Code Period At the beginning of the year Change for the period At the end of the period initial cost accumulated received retired (repaid) interest accrued current market initial cost accumulated adjustment initial cost accumulated (including bringing value adjustment adjustment initial cost to nominal) (impairment losses) 1 2 3 4 5 6 7 8 9 10 11 12 Short-term financial 5305 for 2015 (1) 11,663,328 (8,606,789) 153,799,000 (161,595,328) - - 8,606,789 3,867,000 - investments - total 5315 for 2014 (2) 6,284,109 - 15,379,179 (9,999,960) - - (8,606,789) 11,663,328 (8,606,789) Contributions to 53061 for 2015 (1) - - - - share capitals of other companies - 53161 for 2014 (2) - - total Government and 53062 for 2015 (1) - - - - municipal securities 53162 for 2014 (2) - - Securities of other 53063 for 2015 (1) - - - - organizations - total 53163 for 2014 (2) - - including: debt securities 530631 for 2015 (1) - - - - (bonds, promissory 531631 for 2014 (2) - - notes) 53064 for 2015 (1) - - - - Loans granted 53164 for 2014 (2) - - 53065 for 2015 (1) 11,663,328 (8,606,789) 153,799,000 (161,595,328) 8,606,789 3,867,000 - Deposits 53165 for 2014 (2) 6,284,109 15,379,179 (9,999,960) (8,606,789) 11,663,328 (8,606,789) 53066 for 2015 (1) - - - - Other 53166 for 2014 (2) - - Short-term financial 5306 for 2015 (1) ------investments with current market 5316 for 2014 (2) ------value - total

Description Code Period At the beginning of the year Change for the period At the end of the period initial cost accumulated received retired (repaid) interest accrued current market initial cost accumulated adjustment initial cost accumulated (including bringing value adjustment adjustment initial cost to nominal) (impairment losses) 1 2 3 4 5 6 7 8 9 10 11 12 Contributions to 53071 for 2015 (1) - - - - share (joint-stock) capitals of other 53171 for 2014 (2) - - companies - total Government and 53072 for 2015 (1) - - - - municipal securities 53172 for 2014 (2) - - Securities of other 53073 for 2015 (1) - - - - organizations - total 53173 for 2014 (2) - - including: debt securities 530731 for 2015 (1) - - - - (bonds, promissory 531731 for 2014 (2) - - notes) 53074 for 2015 (1) - - - - Other 53174 for 2014 (2) - - Short-term financial 5307 for 2015 (1) 11,663,328 (8,606,789) 153,799,000 (161,595,328) 8,606,789 3,867,000 - investments for which no current 5317 for 2014 (2) 6,284,109 15,379,179 (9,999,960) (8,606,789) 11,663,328 (8,606,789) market value is determined - total Financial 5300 for 2015 (1) 14,317,654 (8,656,107) 211,656,522 (196,579,301) - 1,280,256 (74,067) 30,675,131 (8,730,174) investments - 5310 for 2014 (2) 7,231,222 (49,318) 17,086,396 (9,999,964) - - (8,606,789) 14,317,654 (8,656,107) total

5.4.2. Adjustments to estimates of financial investments

Item Change for the period At the Retirement beginning upon write- At the end of Description Code of the Increase Decrease off of the period year financial investments 1 2 3 4 5 6 7 Long-term financial investments 7100 (49,318) (8,832,938) 152,082 - (8,730,174) Difference between the current market value of financial 7110 - - - - - investments and their previous estimate including: Contributions to share (joint-stock) capitals of other 7111 - - - - - companies - total including: subsidiaries 71111 - affiliates 71112 - other 71113 - Government and municipal securities 7112 - Securities of other organizations - total 7113 - including: debt securities (bonds, promissory notes) 71131 - Other 7114 - Difference between the current value of debt securities and 7120 - - - - - their initial value including: Securities of other organizations - total 7121 - including: debt securities (bonds, promissory notes) 71211 - Other 7122 - Provision for impairment of financial investments for which 7130 (49,318) (8,832,938) 152,082 - (8,730,174) no market value is determined including: Contributions to share (joint-stock) capitals of other 7131 (49,318) - 49,318 - - companies - total including: subsidiaries 71311 - affiliates 71312 - other 71313 (49,318) 49,318 - Government and municipal securities 7132 - Securities of other organizations - total 7133 - including: debt securities (bonds, promissory notes) 71331 - Loans granted 7134 - Deposits 7135 (8,832,938) 102,764 (8,730,174) Other 7136 -

Item Change for the period Retirement At the At the end upon write- beginning of the Description Code Increase Decrease off of of the year period financial investments 1 2 3 4 5 6 7 Short-term financial investments 7200 (8,606,789) - 8,606,789 - - Difference between the current market value of financial investments and their previous estimate where it was 7210 - - - - - determined including: Contributions to share (joint-stock) capitals of other 7211 - - - - - companies - total including: subsidiaries 72111 - affiliates 72112 - other 72113 - Securities of other organizations - total 7212 - including: debt securities (bonds, promissory notes) 72121 - Other 7213 - Difference between the current value of debt securities and 7220 - - - - - their initial value including: Securities of other organizations - total 7221 - including: debt securities (bonds, promissory notes) 72211 - Other 7222 - Provision for impairment of financial investments without 7230 (8,606,789) - 8,606,789 - - market value including: Contributions to share (joint-stock) capitals of other 7231 - - - - - companies - total including: subsidiaries 72311 - affiliates 72312 - other 72313 - Government and municipal securities 7232 - Securities of other organizations - total 7233 - including: debt securities (bonds, promissory notes) 72331 - Loans granted 7234 - Deposits 7235 (8,606,789) 8,606,789 - Other 7236 -

5.4.3. Other use of financial investments

Description Code At 31 December 2015 At 31 December 2014 At 31 December 2013 1 2 3 4 5 Pledged financial investments - total 5320 including: bonds 5321 promissory notes 5322 shares 5323 Financial investments transferred to third 5325 parties (other than sale) - total including: bonds 5326 promissory notes 5327 shares 5328 Other use of financial investments 5329

5.5. Inventories

5.5.1. Availability and flow of inventories

Description Code Period At the beginning of the year Change for the period At the end of the period cost amount of receipts and retired losses from inventory cost amount of the provision expenses cost provision for depreciation turnover among the provision for depreciation their groups for depreciation (types) depreciation 1 2 3 4 5 6 7 8 9 10 11 12 5400 for 2015 (1) 681,106 - 590,448 (584,351) - - X 687,203 - Inventories - total 5420 for 2014 (2) 584,059 - 640,357 (543,310) - - X 681,106 - raw materials and 5401 for 2015 (1) 681,106 - 590,448 (584,351) 687,203 - supplies 5421 for 2014 (2) 584,059 640,357 (543,310) 681,106 - 5402 for 2015 (1) - - - - work in progress 5422 for 2014 (2) - - 5403 for 2015 (1) - - - - goods shipped 5423 for 2014 (2) - - finished products and 5404 for 2015 (1) - - - - goods 5424 for 2014 (2) - - other inventories and 5405 for 2015 (1) - - - - costs 5425 for 2014 (2) - -

5.5.2. Pledged inventories

Description Code 2015 2015 2013 1 2 3 4 5 Inventories unpaid at the reporting date - total 5440 391,410 452,253 520,341 including: raw materials and supplies 5441 391,410 452,253 520,341 work in progress 5442 goods shipped 5443 finished products and goods 54441 other inventories and costs 54442 Inventories pledged under contract - total 5445 including: raw materials and supplies 5446 goods shipped 5447 finished products and goods 5448 other inventories and costs 5449

5.6 Accounts receivable and accounts payable

5.6.1. Availability and flow of accounts receivable

Description Code Period At the beginning of the year Change for the period At the end of the period recognized amount of the received transferred recognized amount of under contract provision for as a result of interest, fines accrual of repayment written-off written-off to recovery of the from long- under the provision terms doubtful debts business and other the provision against financial provision term to contract for doubtful transactions accruals previously result short-term terms debts (amount of debt receivable accrued receivables under provision transaction) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Short-term accounts receivable 5510 for 2015 (1) 13,151,342 (1,384,170) 185,405,100 - (1,353,910) (190,518,896) (43,594) (21,900) 1,294,966 324,021 8,296,073 (1,399,520) - total 5530 for 2014 (2) 10,472,789 (1,013,959) 91,947,346 - (414,665) (88,935,312) (42,570) (340,223) 1,884 49,312 13,151,342 (1,384,170) including: 5511 for 2015 (1) 7,275,471 (409,398) 51,200,272 - (1,091,761) (53,369,537) (43,594) (21,420) 320,539 206,515 5,247,707 (1,137,026) Trade accounts receivable 5531 for 2014 (2) 5,931,698 (36,729) 53,719,618 - (414,665) (52,143,772) (41,974) (206,531) 22 16,432 7,275,471 (409,398) including: 55111 for 2015 (1) 4,351,298 - 48,007,324 (182,381) (49,405,220) 2,953,402 (182,381) power transmission 55311 for 2014 (2) 3,151,084 42,796,010 (41,491,250) (104,546) 4,351,298 - 55112 for 2015 (1) 1,913,331 (240,610) 2,763,579 (885,516) (3,571,117) (43,084) (20,567) 169,069 1,109,753 2,151,895 (913,973) grid connection 55312 for 2014 (2) 2,139,238 (36,441) 8,659,726 (246,115) (8,860,004) (41,924) (137) 22 16,432 1,913,331 (240,610) organizing the functioning and 55113 for 2015 (1) - - - - development of the UES of Russia as related to distribution 55313 for 2014 (2) - - grid facilities resale of electric power and 55114 for 2015 (1) - - - - capacity 55314 for 2014 (2) - - 55115 for 2015 (1) 30,879 (103) 165,170 (15,058) (118,408) (103) 77,538 (15,058) income from lease 55315 for 2014 (2) 34,196 (95) 171,929 (8) (175,246) 30,879 (103) 55116 for 2015 (1) 979,963 (168,685) 264,199 (8,806) (274,792) (407) (853) 151,470 (903,238) 64,872 (25,614) other 55316 for 2014 (2) 607,180 (193) 2,091,953 (168,542) (1,617,272) (50) (101,848) 979,963 (168,685) 5512 for 2015 (1) 1,051,051 - 2,523,449 (261,536) (3,200,011) (248) (13,985) 360,256 (261,536) Advances issued 5532 for 2014 (2) 540,718 (596) 7,483,436 (6,971,996) (596) (511) 1,051,051 - 5513 for 2015 (1) - - - - Promissory notes receivable 5533 for 2014 (2) - -

Description Code Period At the beginning of the year Change for the period At the end of the period recognized amount of the received transferred recognized amount of under contract provision for as a result of interest, fines accrual of repayment written-off written-off to recovery of the from long- under the provision terms doubtful debts business and other the provision against financial provision term to contract for doubtful transactions accruals previously result short-term terms debts (amount of debt receivable accrued receivables under provision transaction) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 contributions to the share 5514 for 2015 (1) - - - - capital receivable from 5534 for 2014 (2) - - members (founders) Dividends receivable from 5515 for 2015 (1) - - - - subsidiaries and affiliates 5535 for 2014 (2) - - 5516 for 2015 (1) 4,824,820 (974,772) 131,681,379 - (613) (133,949,348) - (232) 974,427 131,491 2,688,110 (958) Other accounts receivable 5536 for 2014 (2) 4,000,373 (976,634) 30,744,292 - - (29,819,544) - (133,181) 1,862 32,880 4,824,820 (974,772) including: 55161 for 2015 (1) - - - - interest-free promissory notes 55361 for 2014 (2) - - Excess payment of taxes and 55162 for 2015 (1) 1,080,530 - 18,017,960 (18,680,727) 417,763 - charges 55362 for 2014 (2) 383,684 19,209,461 (18512615) 1,080,530 - 55163 for 2015 (1) - - - - sale of property 55363 for 2014 (2) - - 55164 for 2015 (1) 3,744,290 (974,772) 113,663,419 (613) (115,268,621) (232) 974,427 131,491 2,270,347 (958) other 55364 for 2014 (2) 3,616,689 (976,634) 11,534,831 (11,306,929) (133,181) 1,862 32,880 3,744,290 (974,772) Total amount of short-term 5517 for 2015 (1) 26,573 - 6,305,370 - - (6,235,667) - - - - 96,276 - accounts receivable included: 5537 for 2014 (2) 50,550 - 151,114 - - (175,091) - - - - 26,573 - 55171 for 2015 (1) 26,573 - 6,305,370 (6,235,667) 96,276 - receivables from subsidiaries 55371 for 2014 (2) 50,550 151,114 (175,091) 26,573 . 55172 for 2015 (1) - - - - receivables from affiliates 55372 for 2014 (2) - - 5500 for 2015 (1) 13,904,054 (1,384,170) 185,882,468 - (1,354,255) (190,922,143) (43,594) (21,900) 1,294,966 - 8,798,885 (1,399,865) Total 5520 for 2014 (2) 10,796,323 (1,013,959) 93,339,380 - (414,665) (89,848,856) (42,570) (340,223) 1,884 - 13,904,054 (1,384,170)

5.6.2. Provision for doubtful debts

Item Change for the period At the beginning of At the end of the Creation of the Write-off of the Description Code the year period provision provision 1 2 3 4 5 6 Trade accounts receivable 7310 409,398 1,146,035 (418,407) 1,137,026 including: power transmission 7311 - 182,381 182,381 grid connection 7312 240,610 885,516 (212,153) 913,973 organizing the functioning and development of the UES of Russia as related to 7313 - distribution grid facilities

resale of electric power and 7314 - capacity income from lease 7315 103 53,905 (38,950) 15,058 other 7316 168,685 24,233 (167,304) 25,614 Advances issued 7330 96,812 844,393 49,039 990,244 Other accounts receivable 7320 974,772 1,190 (974,659) 1,303 Total 7300 1,480,982 1,991,618 (1,344,027) 2,128,573

5.6.3. Overdue accounts receivable

Description Code At 31 December 2015 At 31 December 2014 At 31 December 2013 recognized under carrying amount recognized under carrying amount recognized under carrying amount contract terms (less the provision contract terms (less the provision contract terms (less the provision for doubtful debts) for doubtful debts) for doubtful debts) 1 2 3 4 5 6 7 8 Total 5540 3,758,064 1,629,491 1,460,724 1,460,724 755,056 755,056 including: Trade accounts receivable, including 5541 2,726,388 1,589,361 1,460,724 1,460,724 755,056 755,056 power transmission 55411 1,289,186 1,106,805 928,832 928,832 30,322 30,322 grid connection 55412 794,585 114,737 531,892 531,892 724,734 724,734 organizing the functioning and development of the UES of Russia as related to distribution grid 55413 facilities resale of electric power and capacity 55414 income from lease 55415 66,781 51,723 other 55416 575,837 316,097 Other accounts receivable 5542 1,031,675 40,129

5.6.4. Disagreements with retail companies

Change for the period At the beginning of the year Charged for the period (debit Paid for the period (credit At the end of the period Contractor turnover, RUB thousand) turnover, RUB thousand) Company Contractor Contractor Contractor Contractor Company data Company data Company data data data data data data 1 2 3 4 5 6 7 8 9 Rusenergoresurs LLC 7,052 7,259 - 14,311 SUAL JSC 12,889 12,636 - 253 Transenergoprom LLC 15,851 3,838 - 12,013 EnergoROK-1 LLC 60 52 112 Izhora-Energosbyt CJSC 5,308 5,308 - -

5.6.5. Availability and flow of accounts payable

Description Code Period Balance at the Change for the period Balance at the beginning of the received transferred from end of the year as a result of accrued repayment written-off to long-term to period business interest, fines financial result short-term transactions and other payables (amount of debt accruals under transaction) 1 2 3 4 5 6 7 8 9 10 5560 for 2015 (1) 32,570,045 152,817,942 - (153,710,547) (4,291) 839,962 32,513,111 Short-term accounts payable - total 5580 for 2014 (2) 32,917,612 119,648,565 - (121,772,861) (24,166) 1,800,895 32,570,045 including: 5561 for 2015 (1) 19,002,101 45,919,239 - (46,746,432) (3,557) - 18,171,351 Trade accounts payable 5581 for 2014 (2) 13,991,689 65,303,505 - (60,276,165) (16,928) - 19,002,101 including: 55611 for 2015 (1) 9,385,036 3,990,274 (7,805,693) (2,709) 5,566,908 construction 55811 for 2014 (2) 6,693,461 26,069,865 (23,376,601) (1,689) 9,385,036 55612 for 2015 (1) 9,617,065 41,928,965 (38,940,739) (848) 12,604,443 other 55812 for 2014 (2) 7,298,228 39,233,640 (36,899,564) (15,239) 9,617,065 5562 for 2015 (1) 11,030,377 12,984,988 - (13,304,121) (592) 839,962 11,550,614 Advances received 5582 for 2014 (2) 13,800,034 24,824,062 - (29,388,576) (6,038) 1,800,895 11,030,377 including 55621 for 2015 (1) 51,870 11,288,011 (11,309,774) 30,107 power transmission 55821 for 2014 (2) 13,360 22,787,865 (22,749,355) 51,870 55622 for 2015 (1) 10,948,173 1,530,123 (1,810,779) (76) 839,932 11,507,373 grid connection 55822 for 2014 (2) 13,773,587 1,858,503 (6,479,232) (5,580) 1,800,895 10,948,173 organizing the functioning and 55623 for 2015 (1) 30,311 146,435 (163,241) (516) 12,989 development of the UES of Russia as 55823 for 2014 (2) 10,940 166,291 (146,462) (458) 30,311 related to distribution grid facilities 55624 for 2015 (1) - - resale of electric power and capacity 55824 for 2014 (2) -

Description Code Period Balance at the Change for the period Balance at the beginning of the received transferred from end of the year as a result of accrued repayment written-off to long-term to period business interest, fines financial result short-term transactions and other payables (amount of debt accruals under transaction) 1 2 3 4 5 6 7 8 9 10 55625 for 2015 (1) - - shareholdings in other companies 55825 for 2014 (2) - 55626 for 2015 (1) 23 20,419 (20,327) 115 lease services 55826 for 2014 (2) 2,147 11,403 (13,527) 23 55627 for 2015 (1) - 30 30 other 55826 for 2014 (2) - 5563 for 2015 (1) - - Dividends payable to members (founders) 5583 for 2014 (2) - - 5564 for 2015 (1) - - Promissory notes payable 5584 for 2014 (2) - - 5565 for 2015 (1) 86,304 1,075,704 (1,056,120) 105,888 Payables to state extra-budgetary funds 5585 for 2014 (2) 75,606 1,055,040 (1,044,342) 86,304 5566 for 2015 (1) 225,400 15,868,317 (15,788,188) 305,529 Taxes payable 5586 for 2014 (2) 642,283 17,361,493 (17,778,372) (4) 225,400 5567 for 2015 (1) 226,929 3,934,835 (3,877,956) 283,808 Payables to the company personnel 5587 for 2014 (2) 234,879 4,216,519 (4,224,469) 226,929 5568 for 2015 (1) 1,998,934 73,034,859 (72,937,730) (142) 2,095,921 Other accounts payable 5588 for 2014 (2) 4,173,121 6,887,946 (9,060,937) (1,196) 1,998,934 Total amount of short-term accounts 5569 for 2015 (1) 265,211 5,720,099 - (580,257) - - 5,405,053 payable included 5589 for 2014 (2) 192,750 1,651,859 - (1,579,398) - - 265,211 55691 for 2015 (1) 265,211 5,720,099 (580,257) 5,405,053 payables to subsidiaries 55891 for 2014 (2) 192,750 1,651,859 (1,579,398) 265,211 55692 for 2015 (1) - - payables to affiliates 55892 for 2014 (2) - 5550 for 2015 (1) 35,783,544 153,321,498 - (153,842,979) (4,291) - 35,257,772 Total 5570 for 2014 (2) 34,824,345 122,830,172 - (121,846,807) (24,166) - 35,783,544

5.6.6. Overdue accounts payable

Description Code At 31 December 2015 At 31 December 2014 At 31 December 2013 1 2 3 4 5 Total 5590 26,389,852 1,952,950 1,620,695 including: Trade accounts payable 5591 17,474,514 including construction 55911 4,633,489 other 55912 12,841,026 Dividends payable to members (founders) 5592 Payables to state extra-budgetary funds 5593 Taxes payable 5594 Payables to the company personnel 5595 Other accounts payable 5596 8,915,338 1,952,950 1,620,695

5.6.7. Loans and borrowings

Description Code Period At the Change for the period At the end of beginning of Received Interest Repayment of Repayment of Transferred the period the year accrued principal interest from long-term to short-term debt 1 2 3 4 5 6 7 8 9 10 Long-term 7410 for 2015 (1) 48,188,440 2,436,560 - (8,500,000) - (17,025,000) 25,100,000 borrowings - 7430 for 2014 (2) 29,406,037 22,682,403 - (2,500,000) - (1,400,000) 48,188,440 total including: 7411 for 2015 (1) 42,188,440 36,560 (8,500,000) (11,025,000) 22,700,000 Loans 7431 for 2014 (2) 23,406,037 22,682,403 (2,500,000) (1,400,000) 42,188,440 7412 for 2015 (1) 6,000,000 2,400,000 (6,000,000) 2,400,000 Borrowings 7432 for 2014 (2) 6,000,000 6,000,000 Short-term 7420 for 2015 (1) 1,580,979 - 4,948,802 (5,425,000) (4,773,476) 17,025,000 13,356,305 borrowings - 7440 for 2014 (2) 3,970,003 - 3,575,795 (3,813,439) (3,551,380) 1,400,000 1,580,979 total including 7421 for 2015 (1) 1,400,001 (5,425,000) 11,025,000 7,000,001 Loans 7441 for 2014 (2) 3,813,440 (3,813,439) 1,400,000 1,400,001 74211 for 2015 (1) 77,787 4,131,730 (4,145,186) 64,331 Loan interest 74411 for 2014 (2) 54,748 3,073,298 (3,050,259) 77,787 7422 for 2015 (1) 103,191 817,072 (628,290) 6,000,000 6,291,973 Borrowings 7442 for 2014 (2) 101,815 502,497 (501,121) 103,191

5.6.8. Loan and borrowing expenses

Item Long-term loans and Short-term loans and Description Code borrowings borrowings 1 2 3 4 Loan expenses - total: 7510 3,429,164 702,566 written-off as other expenses 7511 2,598,091 534,187 included in the cost of assets 7512 831,073 168,379 Borrowing expenses - total: 7520 631,264 185,808 written-off as other expenses 7521 479,024 140,806 included in the cost of assets 7522 152,240 45,002 Total loan and borrowing expenses included: 7530 4,084,428 888,374 accrued interest 7531 4,060,428 888,374 sundry expenses 7532 24,000

5.7. Contingent assets and liabilities

5.7.1. Estimated liabilities

Item Balance at the Balance at the Written-off as beginning of the Recognized Repaid end of the Description Code excess amount year period 1 2 3 4 5 6 7 Estimated liabilities - total 5700 3,970,294 2,643,701 (3,057,277) - 3,556,718 including: Upcoming payment of leave allowances 5701 90,146 324,252 (329,185) 85,213 Payment of year-end remunerations 5702 110,030 127,315 237,345 Repair of fixed assets 5703 - Works associated with seasonal production pattern 5704 warranty liabilities and claims 5705 - liquidation liabilities 5706 - pending legal proceedings at the reporting date 5707 448,537 626,558 (291,444) 783,651 claims of tax bodies following tax audits not settled at the reporting date 5708 282,663 282,663 other estimated liabilities 5709 3,321,581 1,282,913 (2,436,648) 2,167,846 Total amount of estimated liabilities included: Recognized in expenses on ordinary activities 5710 420,450 Recognized in other expenses 5720 2,171,095 Included in the cost of asset 5730 52,156

5.7.2. Deferred taxes

Deductible Taxable temporary Description Code temporary Deferred tax assets Deferred tax liabilities differences differences 1 2 3 4 5 6 Balance at the beginning of the 7700 16,714,125 3,342,825 19,026,940 3,805,388 reporting year Income 7710 15,963,950 3,192,790 6,794,190 1,358,839 Expenses 7720 (12,872,535) (2,574,507) (5,440,595) (1,088,119) Result of changes in tax rates 7730 X X Result of correction of previous years' 7740 (1,475,320) (295,064) errors Permanent differences in the cost of 7750 assets and liabilities Write-off without tax consequences 7760 Balance at the end of the reporting 7800 18,330,220 3,666,044 20,380,535 4,076,108 period

5.8. Security

Item At 31 December At 31 December At 31 December Description Code 2015 2014 2013 1 2 3 4 5 Received - total 5800 3,653,536 2,026,645 1,962,324 including: promissory notes 5801 pledged property 5802 - - - including: fixed asset items 58021 securities and other financial investments 58022 other 58023 other received 5803 3,653,536 2,026,645 1,962,324 Issued for own liabilities - total 5810 141,746 138,023 138,026 including: promissory notes 5811 pledged property 5812 - - - including: fixed asset items 58121 securities and other financial investments 58122 other 58123 other issued 5813 141,746 138,023 138,026

5.9. Government grants

Description Code For 2015 For 2014 1 2 3 4 Budget funds received - total 5900 654 59,802 including: for current expenses 5901 compensations to Chernobyl veterans 5902 for performance of mobilization training tasks 5903 654 790 for liquidation of interterritorial cross subsidizing 5904 for investments in non-current assets 5905 for other purposes 5906 59,012 At the Received Returned At the Received Returned At the end of At the end of Description Code beginning during the during the beginning of during the during the the year the year of the year year year the year year year Publicly funded loans - total 5910 - 3,199 (3,199) - - 2,951 (2,951) - including: financing of preventive measures to reduce 5911 3,199 (3,199) - 2,951 (2,951) - occupational injuries and diseases financing of thorough medical check-ups of employees engaged in harmful and/or hazardous production 5912 - - operations other 5913 - -

5.10. Government grants on which the conditions of provision thereof were not met

Item For 2015 For 2014 Description Code To be returned Actually returned To be returned Actually returned 1 2 3 4 5 6 Received budgetary funds on which the conditions of 7910 - - - - provision thereof were not met including for current expenses 7911 compensations to Chernobyl veterans 7912 for performance of mobilization training tasks 7913 for liquidation of interterritorial cross subsidizing 7914 other 7915 Received publicly funded loans on which the conditions of 7920 - - - - provision thereof were not met including financing of preventive measures to reduce 7921 occupational injuries and diseases financing of thorough medical check-ups of employees engaged in harmful and/or hazardous production 7922 operations other 7925

5.11. Other income and expenses

Item For 2015 For 2014 Description Code 1 2 Other income - total 8000 36,745,408 3,622,513 including: From disposal of fixed assets other than apartments 8001 22,506 10,448 From disposal of apartments 8002 1,476 From disposal of inventories 8003 26,264 27,333 From disposal of currency 8004 From disposal of intangible assets 8005 From sale of securities 8006 33,305,024 373 From disposal of other assets 8007 106 85 From joint activities 8008 Profit of 2013 revealed in the reporting period 8009 14,876 45,124 Profit of 2012 revealed in the reporting period 8010 184,406 18,779 Profit of 2011 revealed in the reporting period 8011 246 Profit before 01.01.2011 revealed in the reporting period 8012 Fines and penalties recognized or for which a court (arbitration) decision 8013 500,339 32,480 on their recovery was obtained Accounts payable with expired period of limitation (more than three 8014 4,291 24,147 years) Exchange differences 8015 Property in surplus by results of inventory audit 8016 54,546 78,298 Donated assets other than fixed assets and intangible assets 8017 Income from donated fixed assets determined in accordance with the 8018 2,939 with established procedure Cost of tangible assets remaining from write-off of assets unfit for 8019 16,042 33,277 restoration and further use Revaluation of financial investments at current market value 8020 Income from decrease (write-off) of the provision for doubtful debts 8021 335,965 62,578 Income from decrease (write-off) of the provision for estimated liabilities 8022 1,112,755 1,391,108 Income from decrease (write-off) of the provision for impairment of 8023 tangible assets Income from claim assignment agreements 8024 Income from identified non-contractual power consumption 8025 695,322 1,528,522 Insurance payments receivable 8026 5,652 11,960 Income from shareholdings in other companies 8027 Reversal of previously written-off accounts receivable 8028 15 Discount on promissory notes 8029 Tariff difference compensation (budget funding) 8030 Income from decrease (write-off) of the provision for impairment of 8031 152,082 financial investments Increase in the value of fixed assets 8032 Other 8033 314,986 353,571

Item For 2015 For 2014 Description Code 1 2 Other expenses - total 8100 (40,167,197) (16,460,876) including: From disposal of fixed assets other than apartments 8101 (2,349) (5,242) From disposal of apartments 8102 (118) From disposal of inventories 8103 (22,698) (24,606) From disposal of currency 8104 From disposal of intangible assets 8105 From sale of securities 8106 (33,305,024) (4) From disposal of other assets 8107 (57) (61) Other taxes 8108 (300) (9,677) Expenses related to payment for bank services 8109 (919) (5,278) Cost financial investments servicing 8110 (52,949) (12,614) Provision for doubtful debts 8111 (1,991,618) (468,772) Provision for impairment of financial investments 8112 (226,149) (8,606,789) Provision for impairment of tangible assets 8113 Provision for discontinued activities 8114 Provision for estimated liabilities 8115 (2,171,095) (4,468,093) Disposal of assets without income 8116 (139,502) (50,009) VAT on donated property 8117 (8,938) Loss of 2013 revealed in the reporting period 8118 (833,035) (926,311) Loss of 2012 revealed in the reporting period 8119 (97,982) (31,200) Loss of 2011 revealed in the reporting period 8120 (1,612) Loss before 01.01.2011 revealed in the reporting period 8121 Fines and penalties recognized or for which a court (arbitration) decision 8122 (143,343) (103,959) on their recovery was obtained State duties on economic contracts 8123 (6,224) (10,263) Revaluation of financial investments at current market value 8124 Discount on promissory notes 8125 Expenses on claim assignment agreements 8126 Non-refundable VAT 8127 (34,254) (78,490) Expenses on identified non-contractual power consumption 8128 (194,078) (263,825) Contributions to associations and foundations 8129 (1,335) (6,781) Accounts receivable with expired period of limitation (more than three 8130 (30,231) (142,149) years) Exchange differences 8131 (159) (88) Legal costs 8132 (158,652) (96,474) Embezzlement and deficiencies 8133 (10,845) (45) Enforcement costs 8134 (24,941) (73,573) Repayment of the cost of employees’ apartments 8135 Other material (financial) assistance and other payments to employees 8136 (188,537) (259,870) Material assistance to pensioners (including lump-sum payments, 8137 (11,664) (11,773) compensation for utilities) Expenses on sport events 8138 (12) (6,187) Expenses on cultural and educational activities 8139 (20,342) (31,078) Charity-related expenses 8140 (48,649) (24,980) Write-down of fixed assets 8141 Other 8142 (439,704) (742,567)

5.12. Statement of assets accounted for off-balance sheet

At 31 At 31 At 31 Item Code December December December 2015 2014 2013 1 2 3 4 5 Leased fixed assets 8200 936,011 1,503,677 1,489,605 including: on leasing 82001 343,451 603,470 Goods and materials accepted in safe custody 8201 53,991 79,605 Materials accepted for processing 8202 Goods accepted for commission sale 8203 Equipment accepted for assembly 8204 Debts of insolvent debtors written-ff as losses 8205 935,077 861,959 989,807 Wear of site improvement facilities and other similar facilities 8206 302 288 606 Controlled-issue forms 8207 140 55 74 Federal property 8208 Intangible assets received for use 8209 Property transferred to share capital as payment for purchased shares 8210

5.13. Information on reporting segments

Name of the Name of the Name of the Other At 31.12.2015 Code Saint Petersburg Leningrad Region reporting reporting reporting Total segments segment segment segment 1 2 3 4 5 6 7 8 9 Revenue from external buyers 8310 26,254,765 17,471,896 43,726,661 Revenue from sales among the 8320 - segments Total revenue for the segment 8300 26,254,765 17,471,896 - - - - 43,726,661 Including - revenue from power transmission 8301 23,723,903 16,960,270 40,684,173 revenue from grid connection 8302 2,409,344 456,033 2,865,377 other revenue 8303 121,518 55,593 177,111 Interest receivable 8330 512,425 492,332 1,004,757 Interest payable 8340 2,182,262 1,596,183 3,778,445 Income tax expenses 8350 (332,925) (279,113) (612,038) Profit/(loss) for the segment 8360 (3,218,347) (2,698,149) (5,916,496) Segments’ assets 8370 118,585,892 76,097,135 194,683,027 including non-current assets 8371 99,518,670 57,499,711 157,018,381 Segments’ liabilities 8380 65,350,855 63,813,827 129,164,682 Depreciation of fixed assets and 8390 6,038,573 3,913,373 9,951,946 intangible assets